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Prepare income statement for month using absorption cost

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Reference no: EM132547970

Clean Water Sdn Bhd is a manufacturer of water filters for home use. The following data is provided for the month of June 2019:

Selling Price of one water filter RM 40.00

Units Produced 50,000

Sold 45,000

Beginning Inventory 0

Variable Cost (per unit)

Direct Material RM 10.00

Direct Labour RM 8.00

Variable Overhead RM 2.00

Selling & Administrative Expense RM 3.00

Fixed Cost (for the month)

Manufacturing Overhead 200,000

Selling & Administrative Expense 125,000

Required:

Question (a) Compute the per unit manufacturing cost under absorption costing.

Question (b) Compute the per unit manufacturing cost under variable costing.

Question (c) Prepare a Income Statement for the month using the absorption cost method.

Question (d) Prepare a Income Statement for the month using the variable cost method.

Reference no: EM132547970

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