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In: Accounting
Question No. Four X Limited Corporation making one product only, the standard cost of which is...
Question No. Four
X Limited Corporation making one product only, the standard cost of which is as follow:
|
2016 |
2017 |
2018 |
|
|
Direct material |
35,000 |
36000 |
48,000 |
|
Direct labor |
30,000 |
33000 |
42,000 |
|
Variable manufacturing overhead |
25,000 |
24000 |
54,000 |
|
Variable marketing costs |
10 000 |
15000 |
14.000 |
|
Total variable costs |
100 000 |
122000 |
158.000 |
- The fixed manufacturing overhead costs $300,000
- Fixed marketing costs $200,000
- The selling price $200 per unit sold
- The number of units produced and sold were:
|
Beginning inv. Production Sales Ending inv. |
2016 |
2017 |
2018 |
|
1000 5000 4000 ........ |
.......... 3000 ........ ........ |
3000 6000 ........ 1000 |
Required
- Prepare income statements under variable, absorption and throughput costing for the year ended December 31, 2018.
- Explain the difference of the results?
Solutions
Expert Solution
1. Prepare income statements under variable, absorption and throughput costing for the year ended December 31, 2018.
2. Explain the difference of the results?
ekkarill92 answered 2 years agoRelated Solutions
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Direct labour (1.2 hours at €10 per hour)
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Manufacturing overheads
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10,950 hours of
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ADDITIONAL INFORMATION
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$
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Direct material B – 5 litres at $6 per
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Direct wages – 5 hours at $6 per hour
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GH¢’000
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10
Direct
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Direct
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Factory expenses
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Fixed
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Calculate:
The total cost of a unit
The prime cost of a unit
The selling price of a unit
The variable cost of a unit
The inventory valuation figure
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