Question

REQUIRED Prepare the Income Statement of Waltons Manufacturers for the month ended 28 February 2021 using...

REQUIRED
Prepare the Income Statement of Waltons Manufacturers for the month ended 28 February 2021 using the absorption costing method.
INFORMATION
The following forecasts were obtained from the accounting records of Waltons Manufacturers for the month ended 28 February 2021:

Inventory on 01 February 2021
Nil
Production
25 000 units
Sales
23 000 units
Selling price per unit
R100
Manufacturing costs:
Fixed manufacturing costs
R240 000 per month
Variable manufacturing costs per unit
R42
Marketing costs:
Sales personnel’s salaries and advertising
R40 000 per month
Delivery costs
R5 per unit sold
Administration costs:
Salaries
R50 000 per month
Other office costs
R4 per unit sold

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