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Asif A.

asked • 05/29/20

Please solve this Accounting problem.

The unit selling price and unit production costs of Silver Craft Ltd were as follows for the month of April 2019:-


Selling price Rs120

Direct materials Rs22

Direct labour Rs17

Variable overheads Rs30


Fixed production overheads are based on a monthly production of 4000 units and amounted to Rs 80000.

During the month of April the firm had an opening inventory of 1000 units, produced 5000 units and had sold 3500 units.


Other monthly costs include:-

Fixed selling overheads Rs7000

Fixed administration overheads Rs12000

Fixed distribution overheads Rs6000

Variable selling overheads 5% of sales value



Required:

  1. Profit statement based upon Marginal Approach 
  2. Profit statement based upon Absorption Approach 
  3. A statement reconciling profits based upon the two approaches.


1 Expert Answer

By:

Amos T. answered • 07/28/20

Tutor
New to Wyzant

10years + Accounting Tutor

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