Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Marginal and Absorption costing
- This topic has 2 replies, 2 voices, and was last updated 6 years ago by John Moffat.
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- October 8, 2017 at 9:26 am #409833
Tobiaz Ltd. manufactures beds for students in a private hostel. The following information
relates to the activities of the company from January to June 2014:
GHS
Selling price per unit of product 2,000
Variable cost per unit of product 800
Fixed manufacturing cost (1 month) 300,000
Non-manufacturing cost (1 month) 100,000
There were no opening stocks in January.
Normal production level in Tobiaz Ltd is expected to be 1,500 beds per month, and
production and sales for the period to June 2014 is presented below:
January February March April May June
Units sold 1,500 1,200 1,800 1,500 1,400 1,600
Units produced 1,500 1,500 1,500 1,500 1,700 1,400
Required:
i. Prepare Income Statement for Tobiaz Ltd for each month based on the :
? Marginal Costing
? Absorption Costing System
ii. Explain the difference in profit of the two methodsOctober 8, 2017 at 9:31 am #409834Please help me solve it.
ThanksOctober 8, 2017 at 2:11 pm #409858Please do not post the same question twice – that will not get you a reply any faster (we do not sit in front of the computer 24 hours a day!!!)
Read my reply to your other post.
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