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  • Man. Acc.

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    ankit bhaskar
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    The document provides financial information for a manufacturing company for the months of January and February. It includes details of opening and closing finished goods inventory, production, sales, costs including direct costs, fixed and variable overheads. It then calculates profit for each month under absorption and marginal costing techniques. Absorption costing results in a loss for January but profit for February. Marginal costing shows a smaller loss for January and higher profit for February.

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    The document provides financial information for a manufacturing company for the months of January and February. It includes details of opening and closing finished goods inventory, production, sales, costs including direct costs, fixed and variable overheads. It then calculates profit for each month under absorption and marginal costing techniques. Absorption costing results in a loss for January but profit for February. Marginal costing shows a smaller loss for January and higher profit for February.

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    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
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    8 views6 pages

    Man. Acc.

    Uploaded by

    ankit bhaskar
    The document provides financial information for a manufacturing company for the months of January and February. It includes details of opening and closing finished goods inventory, production, sales, costs including direct costs, fixed and variable overheads. It then calculates profit for each month under absorption and marginal costing techniques. Absorption costing results in a loss for January but profit for February. Marginal costing shows a smaller loss for January and higher profit for February.

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    © All Rights Reserved
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    of 6

    Unit Reconciliation

    Opening Inventory of Finished Goods


    Production
    (Closing Inventory of Finished Goods)

    Sales

    Details

    Fixed Manufacturing Overhead Per Annum (48000 units * 7.50)


    Fixed Manufacturing Overhead Per Month (360000 / 12)

    Fixed Selling & Administrative Overhead Per Annum (Given)


    Fixed Selling & Administrative Overhead Per Month (180000 / 12)
    January February

    0 500
    2000 3200
    (500) (700)

    1500 3000

    Rs

    360000
    30000

    180000
    15000
    PROFIT REPORTING (Under Absorption Costing Technique)

    Sales (1500 * 52.50) & (3000 * 52.50)

    EXPENDITURE

    Direct Material Cost (2000 * 12) & (3200 * 12)


    Direct Labour Cost (2000 * 7.50) & (3200 * 7.50)
    Variable Production Overhead (2000 * 3) & (3200 * 3)
    Fixed Production Overhead (2000 * 7.50) & (3200 * 7.50)

    Total Cost of Production


    Opening Inventory of Finished Goods
    (Closing Inventory of Finished Goods)

    Cost of Goods Sold

    Sub Total (Sales - Cost of Goods Sold)

    Adjustment for Fixed Production Overhead Under Charged


    Variable Selling & Administrative Overhead (10% of Sales Value)
    Fixed Selling & Administrative Overhead

    FINAL PROFIT (LOSS)


    January Februray

    78750 157500

    24000 38400
    15000 24000
    6000 9600
    15000 24000

    60000 96000
    0 15000
    (15000) (21000) (60000* 500 / 2000) & (96000 * 700 / 3200)

    45000 90000

    33750 67500

    (15000) (6000)
    (7875) (15750)
    (15000) (15000)

    (4125) 30750
    PROFIT REPORTING (Under Marginal Costing Technique)

    Sales (1500 * 52.50) & (3000 * 52.50)

    VARIABLE MANUFACTURING COST

    Direct Material Cost (2000 * 12) & (3200 * 12)


    Direct Labour Cost (2000 * 7.50) & (3200 * 7.50)
    Variable Production Overhead (2000 * 3) & (3200 * 3)

    Total Variable Cost of Production


    Opening Inventory of Finished Goods
    (Closing Inventory of Finished Goods)

    Total Variable Cost of Goods Sold

    GROSS CONTRIBUTION (Sales - Variable Cost of Production)

    (Variable Selling & Administrative Overhead) 10% of Sales Value

    NET CONTRIBUTION

    (Fixed Production Overheads)


    (Fixed Selling & Administrative Overheads)

    FINAL PROFIT (LOSS)


    January Februray

    78750 157500

    24000 38400
    15000 24000
    6000 9600

    45000 72000
    0 11250
    (11250) (15750) (45000* 500 / 2000) & (72000 * 700 / 3200)

    33750 67500

    45000 90000

    (7875) (15750)

    37125 74250

    (30000) (30000)
    (15000) (15000)

    (7875) 29250

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