MGT212 Cost and Management Accounting

Cost and Management AccountingTU Board 2082

A manufacturing company with normal capacity of 30,000 units provides the following particulars: Productions units25,000Sales units26,000Closing stock units4,000Direct material per unitRs. 6Direct…

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A manufacturing company with normal capacity of 30,000 units provides the following particulars: Productions units25,000Sales units26,000Closing stock units4,000Direct material per unitRs. 6Direct labour per unitRs. 4Variable manufacturing cost per unitRs. 5Variable selling expenses per unitRs. 2Selling price per unitRs. 30Fixed manufacturing OH per unitRs. 5Fixed administrative and selling expensesRs. 72,000 Required: a. Income statement under absorption costing system. b. Reconciled profit under variable costing system. [7+3]

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