question archive Bolte Manufacturing operations for 2017are as follows:$Per unit: Sales price 50 Direct material cost 18 Direct wages 4 Variable production overhead 3 Per month: Fixed production overhead 99 000 Fixed selling expenses 14000 Fixed administration expenses 26000 Variable selling expenses is 10% of sales value
Bolte Manufacturing operations for 2017are as follows:$Per unit: Sales price 50 Direct material cost 18 Direct wages 4 Variable production overhead 3 Per month: Fixed production overhead 99 000 Fixed selling expenses 14000 Fixed administration expenses 26000 Variable selling expenses is 10% of sales value
Subject:AccountingPrice: Bought3
Bolte Manufacturing operations for 2017are as follows:$Per unit:
Sales price 50
Direct material cost 18
Direct wages 4
Variable production overhead 3
Per month:
Fixed production overhead 99 000
Fixed selling expenses 14000
Fixed administration expenses 26000
Variable selling expenses is 10% of sales value.
Normal capacity was 11000 units per month.
January February
Units Units
Sales 10000 12000
Production 12000 10000
Using the two methods:
A. Compute the unit production cost (4marks)
B. Determine the value of the closing inventory (7marks)
C. Prepare the Marginal Income Statement and the Absorption Income Statement for March and April (22 marks)
