QUESTION 3
The following information relates to the only product made by Ace Limited for the year ended 31 May 2020:
Opening inventory 0
Number of units manufactured 9 000
Number of units sold (at R540 per unit) 7 200
Direct materials cost per unit R90
Direct labour cost per unit R180
Variable manufacturing overheads cost per unit R90
Variable selling expenses per unit R20
Fixed manufacturing overheads cost R450 000
Fixed selling and administrative expenses R180 000
Required:
Draft the income statement for the year ended 31 May 2020 using the:
3.1 Marginal Costing method
3.2 Absorption costing method
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