Use the information provided below to answer the following questions: 2.1 Prepare the Income Statement...
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Accounting
Use the information provided below to answer the following questions:
2.1 Prepare the Income Statement of Clermont Manufacturers for August 2022 using the marginal costing method. (9 marks)
2.2 Prepare the Income Statement of Clermont Manufacturers for August 2022 using the absorption costing method. (8 marks)
2.3 Reconcile the profit calculated according to absorption costing (in question 2.2) with the profit calculated according to marginal costing (in question 2.1). (3 marks)
INFORMATION The following information relates to the only product produced by Clermont Manufacturers during August 2022:
Opening inventory
nil
Number of units manufactured
5 000
Number of units sold
4 500
Selling price per unit
R300
Direct materials cost per unit
R60
Direct labour cost per unit
R40
Fixed manufacturing overheads cost
R90 000
Variable manufacturing overheads per unit
R30
Fixed selling cost
R50 000
Fixed administrative cost
R60 000
Sales commission
R30 per unit
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