2.1 Use the information provided below to prepare the Income Statement of Nescafe Limited for...
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Accounting
2.1 Use the information provided below to prepare the Income Statement of Nescafe Limited for the month ended 31 May 2023 using the: 2.1.1 Variable costing method. 2.1.2 Absorption costing method. 2.2 Reconcile the profit calculated according to variable costing (in question 2.1.1) with the profit calculated according to absorption costing (in question 2.1.2).
INFORMATION The following information was extracted from the accounting records of Nescafe Limited for the month ended 31 May 2023: Inventory on 01 May 2023 Nil Production 54 000 units Sales 46 000 units Selling price per unit R100 Manufacturing costs: Fixed R243 000 per month Variable R42 per unit Marketing costs: Advertising and salaries R28 000 per month Sales personnels commission 5% of sales Administration costs: Office costs including salaries R50 000 per month Other office costs R6 per unit sol
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