3.24 may%2025%20ch15%20extra%20egs

3.24 may%2025%20ch15%20extra%20egs - ACIS222 Absorption and...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
ACIS222 Absorption and Variable Costing Extra Problems
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Problem 1: Medina Ltd The following information is from Medina Ltd: Beginning inventory (units) Units produced 15 000 Units sold 13 800 Ending inventory (units) 1 200 Variable costs per unit: Direct materials $9.00 Direct labour $4.00 Variable overhead $1.50 Variable selling expenses $3.50
Background image of page 2
3 Fixed costs per year: Fixed overhead $48 000 $22 000 Selling price (per unit) $30 There are no work in process inventories. Normal activity is 15 000 units. Expected and actual overhead costs are the same.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 Required (a) Prepare an income statement using absorption costing (b) Prepare an income statement using variable costing (c) Reconcile the difference between the income by the two methods
Background image of page 4
5 (c) Reconciliation Production (units) - Sales (units) Increase in inventory × Fixed overhead rate Difference
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Problem 2: Sugarsmooth 1st year Production 55 000 jars Sales 53 500 jars fixed manufacturing overhead applied at $0.50 per unit produced
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 12

3.24 may%2025%20ch15%20extra%20egs - ACIS222 Absorption and...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online