User Account

All Pages

Prepare operating statements for each of the periods

Assignment Help Cost Accounting
Reference no: EM132549526

Solo limited makes and sells a single product. The following data relate to periods 1 to 4

Variable cost per unit is shs.30

Selling price per unit is shs. 55

Fixed costs per period is shs. 6000

Normal activity is 500 units and production and sales for the four periods are as follows:

Period 1 units - sales is 500 & production is 500

Period 2 units - sales is 400 & production is 500

Period 3 units - sales is 550 & production is 450

Period 4 units - sales is 450 & production is 500

There were no opening stocks at the start of period 1

Required:

Question a) Prepare operating statements for each of the periods 1 to 4, based on marginal costing principles.

Question b) Prepare operating statements for each of the periods 1 to 4, based on absorption costing principles.

Question c) Comment briefly on the results obtained in each period and in total by the two systems.

Reference no: EM132549526

Questions Cloud

Why do you think the results were successful : Discuss one experience you have had with coaching a person or a group and one experience leading a person or group. Were the experiences different?
What was the operating income for that year : Based on absorption costing, what was the operating income for that year? Based on variable costing, what was the operating income for that year?
Record the harvesting of the agricultural produce : In 2015, ABC Limited established and commenced operation of an Flower business in Suva. Record the harvesting of the agricultural produce
How the corrective action should prevent recurrence : How the corrective action helped to restore stability to the financial system? How the corrective action should prevent recurrence of a similar crisis?
Prepare operating statements for each of the periods : Prepare operating statements for each of the periods 1 to 4, based on absorption costing principles. Prepare operating statements for each of the periods
What marginal tax rate will apply to Don : What marginal tax rate will apply to Don for the income tax year ended 30 June 2019? Do not include the Medicare Levy in this rate
Is there another approach that might work better : Topic: Global Economy is very top-down driven with the government making all the decisions and regulations as it relates to doing business globally.
Calculate the fixed production costs absorbed by claud : Calculate the fixed production costs absorbed by Claud in the first quarter if absorption costing is used. Calculate the profit using absorption costing.
Explain process of ordering an item : Question - ATS Pty Ltd provider texts and stationery secondary schools, ordering and accounts payables system. Explain process of ordering an item

Reviews

Write a Review

Cost Accounting Questions & Answers

  Analyse and interpret issues relating to accounting

BO1COAC318-Corporate Accounting-Kent Institute Australia-To demonstrate knowledge of broad business principles with depth of understanding of one business.

  Determine the net income for march

Determine the net income for March, how much did March's transactions increase or decrease retained earnings?

  1 the future value of a dollar as the interest rate

1. the future value of a dollar as the interest rate increases and the farther in the future an initial deposit is

  What is the net cost of the refrigerator to the dealer

What is the net cost of the refrigerator to the dealer, assuming it is paid for within 10 days of purchase?

  Explain how organizations in the not-for-profit sector

Explain how organizations in the not-for-profit sector differ from organizations in the public sector or for-profit business sector. Provide an example of an entity in each sector.

  Show the difference for indirect material dor budget report

If $28,000 of indirect materials costs are incurred at 9,200 direct labor hours, the flexible budget report should show the difference for indirect materials ?

  What are the advantages of a standard costing system

What are the advantages and disadvantages that can result from the use of a standard costing system?

  Schieble corporation provide detachable 5-year warrants to

schieble corporation provide detachable 5-year warrants to buy one share of common stock par value 2 at 30 at a time

  What will be the effect on the profits of the company

What will be the effect on the profits of the company as a whole and Are the managers of the Tuner and Assembly Divisions likely to voluntarily agree to a transfer price for 30,000 tuners each year

  What is the present value of the given amount today

Assuming the appropriate interest rate for discounting is 12% (compounded semiannually), what is the present value of this amount today?

  Statement of cash flows

As an operating tool, cash flow statement gives information about cash generated from operating activities and explanations for the difference between cash from operations and net profit.

  Write a brief statement outlining the projected costs

Write a brief statement outlining the projected costs and benefits of using an ABC approach for the day- to-day control of the overhead costs referred to above as compared to the use of a more traditional cost system.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd