Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. use the information provided below to prepare the

Use the information provided below to prepare the Income Statement for the year ended 31...

50.1K

Verified Solution

Question

Accounting

Use the information provided below to prepare the Income Statement for the year ended 31 May 2024
using the following methods:
2.1 Marginal costing (10 marks)
2.2 Absorption costing. (10 marks)
INFORMATION
The following information was extracted from the accounting records of Blight Limited, a manufacturer
of rechargeable globes, for the year ended 31 May 2024:
Inventory on 01 June 20230
Production for the year (units)50000
Sales for the year (units)40000
Selling price per unit R70
Variable manufacturing costs per unit:
Direct materials R10
Direct labour R5
Overheads R3
Variable selling costs per unit R2
Fixed manufacturing overhead costs R1000000
Fixed selling and administrative costs R300000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students