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Question 1- (12) Global limited provides the following budgeted...

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Accounting

Question 1-

(12)

Global limited provides the following budgeted information for the month of January and February.

Selling price per unit $12, Variable cost per unit $5. There is no opening inventory in January. Production is expected to be 54000 units for the year.

Particulars January $ February $

Fixed production overheads 9000 9000

Fixed administrative costs 800 800

Units Units

Sales 3600 5400

Production 4500 4500

  1. Prepare budgeted profit statement for each month using Marginal costing. Clearly show opening and closing inventory for each month. (5)
  2. Calculate the production overhead absorption rate per unit.(2)
  3. Prepare budgeted profit statement for each month using Absorption costing. Clearly show opening and closing inventory for each month. (5)

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