PROBLEM 4 The actual production, sales and inventory units of a company are as follows:...
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PROBLEM 4 The actual production, sales and inventory units of a company are as follows: Months Baisakh Jestha Asadh Production units 0 30,000 60,000 Sales units 30,000 30,000 15,000 Ending units 100 100 45,100 The Standard Cost for the type of the unit sold disclose the following information : Direct Material Cost per unit Rs. 30 Variable Overhead per unit Rs. 2 Fixed Overhead per unit Rs. 10 Total Rs. 42 The Fixed Manufacturing Cost budgeted for each of the month were Rs. 4,00,000. All selling and administrative expenses were of a fixed nature. The selling and administrative expenses for 3 months were Rs. 13,20,000. The selling price per unit is Rs. 60. You are required to prepare comparative income statement for the 3 months using Absorption Costing and Variable Costing. [Ans: Variable Costing : 0,0, Rs. (4,20,000), Absorption costing : Rs. (3,00,000), 0, Rs. 30,000]
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