Kathmandu Manufacturing Company provides you the following information:
Selling price per unit
Direct material cost
Direct labour cost
Direct expenses
Fixed factory overheads (Normal).
Fixed office and selling overheads
Variable factory overheads
Production
Closing stock
Opening stock
Value of opening stock:
Under variable costing
Under absorption costing
Under absorption of fixed factory overheads
of factor
Required:
(a)
Income statement under direct costing.
(b) Income statement under full costing.
(c)
Reconciliation statement.
Rs. 42
Rs. 8 per unit
Rs. 5 per unit
Rs. 2 per unit
Rs. 440,000
Rs. 250,000
Rs. 3 per unit
.50,000 units
..8,000 units
..3,000 units
Rs. 23
per
unit
Rs. 30 per unit
Rs. 40,000
Ans: (a) VC Rs. 375.000 (b) AC Rs. 418.000 (c) Difference in stock v
ww product d