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Hi sir, Sir please tellme how to solve this question. ThankYou.
Duo Ltd makes and sells two products, Alpha and beta. The Following Information is availble for peiod 3.
Alpha Beta
Production (units) 2,500 1,750
Sales (Units) 2,300 1,600
Opening Inventory (Units) 0 0Financial Data: Alpha Beta
$ $
Unit selling price
unit Cost:
Direct Material 15 12
Direct Labour 18 12
variable Production Overheads 12 8
Fixed Production Overheads 30 20
Variable Selling Overheads 1 1Fixed Production Overheads for the period were $105,000 and Fixed Administration overheads were $27,000.
Required:
(a) Prepare an income statement for period 3 based on Marginal costing principles.
(b) Prepare an income statement for period 3 based on Absorption costing principles.The only real way that I can help you is by telling you to watch the free lectures on absorption and marginal costing (with the free Lecture Notes in front of you).
I am sorry, but it is really not realistic for me to type out the entire lectures here. This question is very similar to the example that I go through in the free lectures.
(Incidentally, although it is important that you make sure that you can sort out the question you have typed, it cannot be asked in that way in the real exam. In the exam you can only be asked for extracts from it.)
If when you have watched the lectures, you still have any specific problems on this question then please do ask again.
I have no idea what premium you are referring to.
Certainly our lectures, lecture notes, and other materials on our website are all available free of charge in Tanzania – there are several hundred students in Tanzania using our materials.
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