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Problem 1: A manufacturing company produces a single product. During the year ended 31 December 2009, 10,000 units were produced and sold. There was no opening inventory. The costs of manufacturing during the year were shown as follows:
Direct Materials 600,000Direct Labour 200,000Variable Manufacturing Overheads 40,000Fixed Manufacturing Overheads 300,000Variable Selling Overheads 187,500Fixed Selling and Administrative Overheads 250,000
Required:
Question i) Complete marginal and absorption statements.
Question ii) Use the same data in part i) above however there was closing inventory of 2,000 units, i.e.only 8,000 units were sold during the year. Complete marginal and absorption statements
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