Question Four Absorption and Marginal Costing (20 marks) The following information was extracted from the...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Question Four Absorption and Marginal Costing (20 marks) The following information was extracted from the accounting records of ZFD Manufacturers for the year ended September 2019: UNITS Inventory at the beginning of the year Production for the year Sales for the year (at R60 per unit) Nil 14 500 13 000 Wolon Direct Materials cost per unit 15 Direct Labour cost per unit 9 Variable Manufacturing overheads per unit Variable selling and administrative cost per unit 3 Fixed manufacturing overhead cost 174 000 Fixed selling and administrative cost 75 000 The company utilises the first-in-first-out method of inventory valuation. Required: 4.1 Prepare the Income Statement using the Marginal Costing method. 4.2 Prepare the Income Statement using the Absorption Costing method. (11 marks) (9 marks)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
