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Samsung International makes and sell two kinds of cellular phones, Samsung S4 and Samsung S5. The following information is available for June 2014:
Products Production Sales
Samsung S4 6,300 units 6,020 units
Samsung S5 4,340 units 3,640 units
Relevant information also include:
Samsung S4 Samsung S5
$ $
Unit selling price 119.00 84.00
Unit variable costs
Direct materials 28.00 14.00
Direct labour ($4.20/hr) 21.00 25.20
Variable production overheads 21.00 28.00Fixed costs were $105,000 for June and are recovered on the basis of direct labour hours.
There was no opening inventory for either product.
What is the profit reported for June 2014 using marginal costing principles?
We are here to help with specific problems that you have, not to provide complete answers to questions you have found. Presumably the book in which you found the question also provides the answer!
If you say which part of the answer is giving you a problem then I will try and help you.(The free lectures on marginal and absorption costing will help you!)
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