Question

Texla Company has a production capacity of 12,000 units and normal capacity utilization is 80%. Opening...

  1. Texla Company has a production capacity of 12,000 units and normal capacity utilization is 80%. Opening stock of finished goods on 01-01-2018 was 3000 units. During the year ending 31-12-2018, it produced 10000 units while it sold only 8,000 units. The standard variable cost per unit is Aed 6.5 and standard fixed factory cost per unit Aed 2.50. Total fixed selling and administration overhead amounted to Aed. 10,000. The Company sells its product at Aed 5 /unit.

Prepare income statement under absorption costing

Note : Answers should be in word format or Excel

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Hayes Company operated at normal capacity during the current year, producing 52268 units of its single...
Hayes Company operated at normal capacity during the current year, producing 52268 units of its single product. Sales totalled 38018 units at an average price of $22.33 per unit. Variable manufacturing costs were $10.75 per unit, and variable marketing costs were $4.13 per unit sold. Fixed costs were incurred uniformly throughout the year and amounted to $182213 for manufacturing and $61960 for marketing. There were no opening inventories. What is Hayes operating income (loss) under absorption costing? Select one: a....
Hayes Company operated at normal capacity during the current year, producing 54814 units of its single...
Hayes Company operated at normal capacity during the current year, producing 54814 units of its single product. Sales totalled 45978 units at an average price of $24.62 per unit. Variable manufacturing costs were $11.80 per unit, and variable marketing costs were $4.92 per unit sold. Fixed costs were incurred uniformly throughout the year and amounted to $159038 for manufacturing and $54559 for marketing. There were no opening inventories. What is Hayes operating income (loss) under direct (variable) costing? Select one:...
A company has closing inventory of 800 units and opening inventory of 600 units in an...
A company has closing inventory of 800 units and opening inventory of 600 units in an accounting period the company follows absorption costing system and reports profit of 35000 had the company followed variable costing system for the accounting period it would be have reported profit of Rs 20000 what would be fixed cost per unit for company product
Based on a predicted level of production and sales of 15,000 units, a company anticipates total...
Based on a predicted level of production and sales of 15,000 units, a company anticipates total variable costs of $48,000, fixed costs of $21,000, and operating income of $81,600. Based on this information, the budgeted amount of operating income for 12,000 units would be: Multiple Choice $61,080. $82,080. $13,080. $38,400. $120,480. Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead spending variance. Direct labor standard (3.00 hrs. @ $18.20/hr.) $ 54.60 per...
Hayes Company operated at normal capacity during the current year, producing 54814 units of its single...
Hayes Company operated at normal capacity during the current year, producing 54814 units of its single product. Sales totalled 45978 units at an average price of $24.62 per unit. Variable manufacturing costs were $11.80 per unit, and variable marketing costs were $4.92 per unit sold. Fixed costs were incurred uniformly throughout the year and amounted to $159038 for manufacturing and $54559 for marketing. There were no opening inventories. What is Hayes operating income (loss) under direct (variable) costing? Select one:...
Hayden Corp. has the following data: Normal capacity                             40,000 Practical capacity &nb
Hayden Corp. has the following data: Normal capacity                             40,000 Practical capacity                          45,000 Budgeted production                         30,000 Actual production                           35,000 Actual sales (P20 per unit)                 32,000 Standard variable production cost per unit     P12 Budgeted fixed production costs           P135,000 There were no variable cost variances for the year. Fixed costs incurred were equal to the budgeted amount. There were no beginning inventories and no selling or administrative expenses. Compute the absorption costing income if fixed costs per unit are determined using normal capacity....
BC Company produces and sells a single product called Kleen. Annual production capacity is 100,000 machine...
BC Company produces and sells a single product called Kleen. Annual production capacity is 100,000 machine hours. It takes one machine hour to produce a unit of Kleen. Annual demand for Kleen is expected to remain at 80,000 units. The selling price is expected to remain at $10 per unit. Cost data for producing and selling 80,000 units of Kleen are as follows: Variable costs per unit: Direct materials $1.50 Direct labor $2.50 Variable manufacturing overhead $0.80 Variable selling expense$2.00...
A company has over-absorbed fixed production overheads for the period by €6,000. The fixed production overhead...
A company has over-absorbed fixed production overheads for the period by €6,000. The fixed production overhead absorption rate was €8 per unit and is based on the normal level of activity of 5,000 units. Actual production was 4,500 units. What was the actual fixed production overheads incurred for the period? A) €36,000 B) €40,000 C) €30,000 D) €42,000 Two products (W and A) are created from a joint process. Both products can be sold immediately after split-off. There are no...
The Indigo Girls Company has the capacity to produce 90,000 units per year. Normal production and...
The Indigo Girls Company has the capacity to produce 90,000 units per year. Normal production and sales are 75,000 units per year. The normal selling price is $15 per unit. At the 75,000 unit level of activity, unit costs are as follows: Direct material $2.25 per unit Variable Overhead $1.50 per unit Fixed Overhead $2.00 per unit ($150,000 total) Direct Labor $1.75 per unit Variable Selling $1.00 per unit Fixed Selling $1.20 per unit ($80,000 total) A special one-time customer...
The following data relate to Hunter, Inc., a new company: Planned and actual production 200,000 units...
The following data relate to Hunter, Inc., a new company: Planned and actual production 200,000 units Sales at P48 per unit 170,000 units Manufacturing costs: Variable P18 per unit Fixed P840,000 Selling and administrative costs: Variable P7 per unit Fixed P925,000 There were no variances during the period. Required: Determine the number of units in the ending finished-goods inventory. Calculate the cost of the ending finished-goods inventory under (1) variable costing and (2) absorption costing. Determine the company's variable-costing net...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT