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4 marksMarginal and Absorption Costing

CAPE Accounting Unit 2 · 2004 · Paper 2 · Question 2(a)(i)

Berbice Industries Ltd manufactures a single product with provided production, sales, unit cost, and fixed cost figures for the most recent month.

Compute the unit product cost under absorption costing and under variable/marginal costing.

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Other parts of this question

  1. 2(a)(ii)Prepare an income statement for the month using the variable/marginal costing method.[10 marks]
  2. 2(a)(iii)Prepare an income statement for the month using the absorption costing method.[10 marks]
  3. 2(b)What was the total cost of the stay of patient Fred Adams in the hospital?[11 marks]

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