Reference no: EM133180927

Question - Le Tran is the major supplier of mask for HEM markets. During the financial year that ended 31 March 1022, the following information was extracted:

Detailed balance of finished goods inventory of gloves:

1 April 2020 - 2,000

31 March 2021 - 4,000

As planned, the factory produced 20,000 units of gloves during the year.

The variable manufacturing cost incurred were: direct material cost were $3 per unit, direct labour cost were $12 per unit and variable manufacturing overhead were $7 per unit total.

The selling and administrative expenses incurred during the year were; variable selling, and administrative expense were $3 per unit.

Fixed cost totaled $1,900,000 with 40% of it, is related to selling and administrative.

All of the gloves are sold for $180 per unit. A total of 18,000 units were sold during the year.

Required -

a) Compute the Net Profit under variable costing.

b) Compute the Net Profit under absorption costing.

c) Compute the Net Profit under variable costing.