Saunders manufactures a single product, details of which are as follows. per...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Saunders manufactures a single product, details of which are as follows.
per unit
$
selling price
1500
direct materials
400
direct labour
200
variables overheads
150
Annual fixed production overheads are budgeted to be $4 million and Saunders expects to produce 80,000 units of Bark each year. Overheads are absorbed on a per unit basis. Budgeted fixed selling costs are $1,520,000 per quarter.
Actual stock data for quarter of 2020 are given below.
January -March
April-June
Sales
20000
23000
Production
22000
17000
opening Stock
5000
7000
Required-
Calculate closing stock.
Prepare a Marginal Costing Statement for both quarters.
Prepare an Absorption Costing Statement for both quarters.
Reconcile profit figures from both statements.
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!
