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.