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    nono73's Avatar
    nono73 Posts: 2, Reputation: 1
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    #1

    Feb 24, 2012, 05:06 PM
    Income statement using marginal costing method?
    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's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    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
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