Quelpr
9 marksMarginal and Absorption Costing

CAPE Accounting Unit 2 · 2018 · Paper 2 · Question 2(c)(i)

Lasmoy Ltd actual costs and price: Selling price 90/unit, Direct materials 30/unit, Indirect materials (all variable) 420 000, Direct labour 25/unit, Indirect labour (all variable) 364 000, Factory overheads (60% variable) 560 000, Administrative and selling (80% fixed) $1 050 000. In 2017, planned production was 80 000 units; actual production was 70 000 units; 65 000 units sold.

Calculate the per unit value of closing inventory using marginal costing.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 2(a)Compute the predetermined factory overhead rate for EACH department.[4 marks]
  2. 2(b)(i)Calculate the total overhead cost of Job 748.[5 marks]
  3. 2(b)(ii)Determine the unit cost of Job 748, which consists of 200 units of product.[7 marks]
  4. 2(c)(ii)Prepare the Income Statement for Lasmoy Ltd using absorption costing.[10 marks]

More practice: the rest of this paper · more Marginal and Absorption Costing questions · all CAPE Accounting Unit 2 past papers