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Assignment Question(s):​​​​​​(Marks5) Q1. Give a numerical example for Variable Costing Contribution Format Income Statement that is...

Assignment Question(s):​​​​​​(Marks5)
Q1. Give a numerical example for Variable Costing Contribution Format Income Statement that is used for the internal decision-making and compare with the traditional income statement prepared by absorption costing that is used for the external reporting. Prepare the two income statements assuming the following (2.5 marks)
1- There is no inventory.
2- There is beginning inventory.
3- There is end of period inventory
4- Explain and comment on the reasons for differences in the results
Answer:
Q2. Define the master budget and use your own figures to prepare the following quarter budgets: (2.5 marks)
1- Sales budget
2- Production budget with ending inventory.
3- Raw material budget with ending inventory.
4- Direct labor budget
5- Manufacturing overhead budget.
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