CoursHeroTranscribedText: INSTRUCTION: Bucky Gee manufactures a single product and has prepared the following data for...
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CoursHeroTranscribedText: INSTRUCTION: Bucky Gee manufactures a single product and has prepared the following data for the year ended June 30, 2020 and June 30, 2021 . Selling price per unit $95 Direct materials per unit $25 Direct labour (30 minutes per unit @ $10 per hour) ? Variable production overhead $19 per direct labour hour Sales commission per unit $2 F ixed production overhead $173,500 per annum Fixed administrative cost $9,000 per annum Normal activity level T00 Expected production and sales Year ended June 30 2020 Year ended June 30 2020 Production (units) 600 820 Sales (units) 520 850 Required i. Compute the production cost per unit under marginal costing and absorption costing (5 marks) ii. Prepare income statements for the years ended June 30, 2020 and June 30 2021 using marginal costing (15 marks) Prepare income statements for the years ended June 30, 2020 and June 30, 2021 using absorption costing. (10 marks) iv. Prepare a statement to reconcile the difference in profit for BOTH years (5 marks) v. Explain why a business might consider it appropriate to use both the marginal and absorption costing methods
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