Beans manufactures a single product, details of which are asfollows.
Per unit | $ |
Selling price | 700 |
Direct Materials | 90 |
Direct labour | 120 |
Variable overheads | 200 |
Annual fixed production overheads are budgeted to be $10 millionand the company expects to produce 200,000 units each year.Overheads are absorbed on a per unit basis.
Fixed operational expenses for the quarter are as follows
· Sellingcosts $400,000
· Administrativecosts $1,500,000
· Distributioncosts $600,000
Actual stock data for quarter of 2020 are given below.
| January – March |
Sales | 48,000 |
Production | 42,000 |
Closing stock | 3,000 |
Required-
a. CalculateOpening stock.
b. Prepare a MarginalCosting Statement.
c. Prepare anAbsorption Costing Statement.
d. Reconcile profitfigures from both statements.
