Thotho manufactures headscarves. The following information is available in her books on December 31, 2012. BW Opening inventory 1500 Headscarves made during the year 9000 Head scarves sold during the year 9500 Closing inventory 1000 Selling price 90 Manufacturing costs Variable costs Direct material/Headscarf 25 Direct labour hour cost used to 9 make one scarf 5 variable manufacturing overhead 15000 Fixed manufacturing overhead per year Selling and administrative costs: Commission paid for selling one scarf 10 fixed selling and administration costs per year 100000
Thotho manufactures headscarves. The following information is available in her books on December 31, 2012. BW Opening inventory 1500 Headscarves made during the year 9000 Head scarves sold during the year 9500 Closing inventory 1000 Selling price 90 Manufacturing costs Variable costs Direct material/Headscarf 25 Direct labour hour cost used to 9 make one scarf 5 variable manufacturing overhead 15000 Fixed manufacturing overhead per year Selling and administrative costs: Commission paid for selling one scarf 10 fixed selling and administration costs per year 100000
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...
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Thotho manufactures headscarves. The following information is available in her books on
December 31, 2012.
BW | |
Opening inventory | 1500 |
Headscarves made during the year | 9000 |
Head scarves sold during the year | 9500 |
Closing inventory | 1000 |
Selling price | 90 |
Variable costs | |
|
25 |
|
9 |
make one scarf | 5 |
|
15000 |
Fixed manufacturing overhead per year | |
Selling and administrative costs: | |
Commission paid for selling one scarf | 10 |
fixed selling and administration costs per year | 100000 |
Required:
a) Prepare the income statement for the year ended December 31, 2012 using
i) Variable costing.
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