Question 2 Using the above information on Pamlico Manufacturing Ltd, prepare the statement of comprehensive income using absorption costing principles for the month of December and assume the following: 1. Normal level of activity is 25 000 shirts per month. 2. Fixed production costs were 37 500 for the month.

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter4: Operating Activities: Sales And Cash Receipts
Section: Chapter Questions
Problem 1.3C
icon
Related questions
Question
100%
Question 1: Pamlico Manufacturing Ltd has the following information given in the table below.
12.50
Sales per unit
Variable production cost per unit
Variable administration sales and distribution per
7.50
1.00
unit
Fixed production costs
37 500
18 750
Fixed administration sales and distribution
Opening inventory in units
Units produced
2 500
25 000
At the beginning of December 2018, there were 2 500 units in inventory.
Required:
Draw up a staement of comprehensiy income according to margial costing principlesor three
differenevels of sales, for the moth of December
12 500 units
b) 18 750 units
c) 25 000 units
Question 2
Using the above information on Pamlico Manufacturing Ltd, prepare the statement of comprehensive
income using absorption costing principles for the month of December and assume the following:
1. Normal level of activity is 25 000 shirts per month.
2. Fixed production costs were 37 500 for the month.
Transcribed Image Text:Question 1: Pamlico Manufacturing Ltd has the following information given in the table below. 12.50 Sales per unit Variable production cost per unit Variable administration sales and distribution per 7.50 1.00 unit Fixed production costs 37 500 18 750 Fixed administration sales and distribution Opening inventory in units Units produced 2 500 25 000 At the beginning of December 2018, there were 2 500 units in inventory. Required: Draw up a staement of comprehensiy income according to margial costing principlesor three differenevels of sales, for the moth of December 12 500 units b) 18 750 units c) 25 000 units Question 2 Using the above information on Pamlico Manufacturing Ltd, prepare the statement of comprehensive income using absorption costing principles for the month of December and assume the following: 1. Normal level of activity is 25 000 shirts per month. 2. Fixed production costs were 37 500 for the month.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Cost allocation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Quickbooks Online Accounting
Quickbooks Online Accounting
Accounting
ISBN:
9780357391693
Author:
Owen
Publisher:
Cengage