Saunders manufactures a single product, details of which are as follows. per...
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Accounting
Saunders manufactures a single product, details of which are as follows.
| per unit | $ |
| selling price | 1500 |
| direct materials | 400 |
| direct labour | 200 |
| variables overheads | 150 |
Annual fixed production overheads are budgeted to be $4 million and Saunders expects to produce 80,000 units of Bark each year. Overheads are absorbed on a per unit basis. Budgeted fixed selling costs are $1,520,000 per quarter.
Actual stock data for quarter of 2020 are given below.
| January -March | April-June | |
| Sales | 20000 | 23000 |
| Production | 22000 | 17000 |
| opening Stock | 5000 | 7000 |
Required-
- Calculate closing stock.
- Prepare a Marginal Costing Statement for both quarters.
- Prepare an Absorption Costing Statement for both quarters.
- Reconcile profit figures from both statements.
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