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    MAamir - 2972 - 19904 - 4 - Margial & Absorption-PQ

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    aliraza786kalhoro
    The document provides cost and production information for Sooriya Pvt Ltd over 4 months. It includes standard costs per unit for direct material, direct labor, and variable factory overhead. It also provides information on normal capacity, fixed overhead, marketing and administrative expenses, sales price per unit, and monthly production and sales figures. The task is to prepare income statements for the 4 months under marginal and absorption costing methods.

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    MAamir - 2972 - 19904 - 4 - Margial & Absorption-PQ

    Uploaded by

    aliraza786kalhoro
    1 views1 page
    The document provides cost and production information for Sooriya Pvt Ltd over 4 months. It includes standard costs per unit for direct material, direct labor, and variable factory overhead. It also provides information on normal capacity, fixed overhead, marketing and administrative expenses, sales price per unit, and monthly production and sales figures. The task is to prepare income statements for the 4 months under marginal and absorption costing methods.

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    MAamir_2972_19904_4_Margial & Absorption-PQ

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    The document provides cost and production information for Sooriya Pvt Ltd over 4 months. It includes standard costs per unit for direct material, direct labor, and variable factory overhead. It also provides information on normal capacity, fixed overhead, marketing and administrative expenses, sales price per unit, and monthly production and sales figures. The task is to prepare income statements for the 4 months under marginal and absorption costing methods.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    1 views1 page

    MAamir - 2972 - 19904 - 4 - Margial & Absorption-PQ

    Uploaded by

    aliraza786kalhoro
    The document provides cost and production information for Sooriya Pvt Ltd over 4 months. It includes standard costs per unit for direct material, direct labor, and variable factory overhead. It also provides information on normal capacity, fixed overhead, marketing and administrative expenses, sales price per unit, and monthly production and sales figures. The task is to prepare income statements for the 4 months under marginal and absorption costing methods.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    The following data relates to SOORIYA PVT LTD, manufacturer of Industrial Products.

    Standard Cost Card:-


    Rs. (per unit)
    Direct Material 3
    Direct Labour 2.25
    Variable FOH 0.75

    Other relevant information is given as under:

    Normal capacity of plant 240,000 units per year


    Fixed FOH at Normal Capacity Rs. 300,000 per year
    Fixed marketing & administrative expenses Rs. 60,000 per year
    Variable marketing & administrative expenses:
    Month - 1 Rs. 3,400
    Month – 2 Rs. 3,600
    Month – 3 Rs. 4,000
    Month – 4 Rs. 3,000
    Sales price per unit Rs. 10

    Summary of sales & production for 4 months are as under:

    MONTH – 1 MONTH – 2 MONTH – 3 MONTH – 4


    Beg Inventory - -
    Units produced 17,500 21,000 19,000 20,000
    Units sold 17,500 18,000 21,000 16,500

    Required:-
    Prepare Income Statement under Marginal & Absorption methods.

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