description 2013 absorption costing variable costing direct raw material cost 50
ID: 2500506 • Letter: D
Question
description 2013
absorption costing variable costing
direct raw material cost 50.000 50.000
direct labor cost 30.000 30.000
variable mfg. overhead cost 20.000 20.000
fixed manufacturing overhead cost 6.667
total product cost 106.667 100.000
selling price 128.000 120.000
number of units produced = 3000
number of unit sold = 2500
what is the income statment for absorption costing and variable costing
and the Reconciliation
Explanation / Answer
absorption costing income statement
Particulars
Amount
Variable mfg cost of qty produced
(50+30+20)=100
+ fixed mfg cost of qty produced
6.667
Total mfg cost of qty produced
106.667
+opening stock of finished goods
Nil
-closing stock of finished goods
Nil
Total mfg cost of qty sold
106.667
=profit
21.333
Sales value
128
variable costing income statement
Particulars
Amount
variable mfg cost of qty produced
100
+opening stock of finished goods
Nil
-closing stock of finished goods
Nil
Vbariable mfg cost of qty sold
100
Total variable cost of qty produced/sold
100
Sales value
120
Contribution of qty sold
20
-fixed cost
6.667
profit
13.333
Particulars
Amount
Variable mfg cost of qty produced
(50+30+20)=100
+ fixed mfg cost of qty produced
6.667
Total mfg cost of qty produced
106.667
+opening stock of finished goods
Nil
-closing stock of finished goods
Nil
Total mfg cost of qty sold
106.667
=profit
21.333
Sales value
128
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