Make an Income Statement using the Marginal Costing method

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Reference no: EM132774999

Question - The following information was extracted from the accounting records of ABC Manufacturers for the year ended September 2020:

UNITS

Inventory at the beginning of the year Nil

Production for the year 20 000

Sales for the year (at R75 per unit) 18 250

R

Direct Materials cost per unit 21

Direct Labour cost per unit 7

Variable Manufacturing overheads per unit 8

Variable selling and administrative cost per unit 5

Fixed manufacturing overhead cost 182 000

Fixed selling and administrative cost 77 000

REQUIRED -

1. Make an Income Statement using the Marginal Costing method.

2. Make an Income Statement using the Absorption Costing method.

Reference no: EM132774999

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