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View Full Version : Income statement using marginal costing method?


nono73
Feb 24, 2012, 05:06 PM
Prepare income the statement using marginal costing method based on following info

Inventory - nil
Production - 27000
Sales - 23000
Fixed manufacturing cost - 120000
Variable manufacturing cost per unit - 21.00
Selling price - 50.00
Marketing cost
Advertising - 6000
Sales personnel salaries and commission - 8000 per month plus 5% of sales
Delivery cost - 5.00
Administration cost
Salaries - 18000 per month
Other office costs - 7000 per month plus 3.00 per unit sold

paraclete
Feb 24, 2012, 05:57 PM
what you need to know is that Cost of Sales and Gross Profit will be calculated using variable cost of manufacturing all the rest is just basic maths and presentation