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absorption costing and marginal costing question

Forums › ACCA Forums › General ACCA Forums › absorption costing and marginal costing question

  • This topic has 0 replies, 1 voice, and was last updated 13 years ago by missyneha014.
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  • June 26, 2012 at 3:42 pm #53654
    missyneha014
    Member
    • Topics: 1
    • Replies: 0
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    We have the following questions of which my friend and I are getting different answers in regards to the profit earned under the two techniques. Can you please help and please show all the working and steps involved. Please show the income statements under both techniques.

    The following data relate to XYZ company which makes and sells computers.

    Production 1,00,000 units
    Sales 80,000 units
    Selling price/unit Rs.15
    Direct materials Rs. 2,50,000
    Direct labour Rs. 3,00,000
    Factory overheads:
    Variable Rs. 1,00,000
    Fixed Rs. 2,50,000
    Selling and Distribution overheads:
    Variable Rs. 1,00,000
    Fixed Rs. 2,00,000

    You are required to present income statements using (a) absorption costing and (b) marginal costing. Find the profit earned in using the two different techniques.

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