Reference no: EM132589448
Question - Bio Tech manufactures and sells surgical mask. It produced and sold 30,000 masks. The following represent information available for the year ended December 3, 2016.
Selling Price per unit 25
Direct Materials cost per unit 6
Direct wages per hour 3
Variable manufacturing overhead per unit 2
Variable selling Expenses per unit 4
Fixed manufacturing overhead 160,000
Fixed Admin & distribution 50,000
Required -
A. Create income statements for the year ended Dec 31, 2018 based on both marginal and absorption costing.
B. Outline the main difference between a marginal costing statement and the absorption costing statement. State what contributes to a difference in profits under both techniques.
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: Bio Tech manufactures and sells surgical mask. Create income statements for the year ended Dec 31, 2018 based on both marginal and absorption costing
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