tITYear 2 P- x | 125% REQUIRED Use the information given below to prepare the In
ID: 2333080 • Letter: T
Question
tITYear 2 P- x | 125% REQUIRED Use the information given below to prepare the Income statement for April 2018 according to the absorption costing method. (12 INFORMATION The following information was extracted from the accounting records of Stefano Enterprises for th months ended 31 March and 30 April 2018 31 March 2018 Units 4 600 437 000 95 Sales for the month Selling price per unit Production for the month Finished goods at beginning of month Variable manufacturing costs per unit Variable selling and administrative costs per unit sold Fixed manufacturing costs Fixed selling and administrative costs 5 000 Nil 13 18 000 12 000 30 Anril 2018Explanation / Answer
Income Statement : Mar-18 Apr-18 Sales(4600 & 4200 units) 437000 420000 Less: COS: COGM: Manuf. V.Cost 110000 115000 Fixed M. Cost 18000 23000 COGM (5000 & 4600 units) 128000 138000 Add: Op Stock(400 units) 0 10240 Less: Cl Stock (800 units) -10240 -24000 COS (4600 & 4200 units) 117760 124240 Gross Profit 319240 295760 Less: Selling & Admin costs: Variable costs 59800 63000 Fixed Costs 12000 13000 Total Selling & Admin costs: 71800 76000 Net Operating Cost 247440 219760
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