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The following is the cost information of a product variable manufacturing cost rupees 4 per unit fixed manufacturing cost rupees 200000 per year the normal capacity as set at 2 lakh units there are no work in progress inventories last year the form produced to lact 10000 units and sold 90% at a price of rupees 7 per unit in the current year the form produce 2 lakh 10000 units and Soul 215000 unit at the same price prepare income statement for both the year based on absorption costing and variable cost?
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The following is the cost information of a product variable manufactur...
Income Statement for Last Year (Absorption Costing)
- Sales Revenue: 90% of 100,000 units sold at Rs. 7
- Sales = 90,000 units × Rs. 7 = Rs. 630,000
- Cost of Goods Sold (COGS):
- Variable Cost = 100,000 units × Rs. 4 = Rs. 400,000
- Fixed Cost (allocated for 100,000 units) = Rs. 200,000
- Total COGS = Rs. 400,000 + Rs. 200,000 = Rs. 600,000
- Gross Profit:
- Gross Profit = Sales Revenue - COGS = Rs. 630,000 - Rs. 600,000 = Rs. 30,000
- Net Income:
- Net Income = Gross Profit = Rs. 30,000
Income Statement for Current Year (Absorption Costing)
- Sales Revenue: 215,000 units sold at Rs. 7
- Sales = 215,000 units × Rs. 7 = Rs. 1,505,000
- Cost of Goods Sold (COGS):
- Variable Cost = 210,000 units × Rs. 4 = Rs. 840,000
- Fixed Cost (allocated for normal capacity of 200,000 units) = Rs. 200,000
- Total COGS = Rs. 840,000 + Rs. 200,000 = Rs. 1,040,000
- Gross Profit:
- Gross Profit = Sales Revenue - COGS = Rs. 1,505,000 - Rs. 1,040,000 = Rs. 465,000
- Net Income:
- Net Income = Gross Profit = Rs. 465,000
Income Statement for Last Year (Variable Costing)
- Sales Revenue:
- Sales = Rs. 630,000 (same as above)
- Variable COGS:
- Variable Cost = Rs. 400,000 (same as above)
- Contribution Margin:
- Contribution Margin = Sales Revenue - Variable COGS = Rs. 630,000 - Rs. 400,000 = Rs. 230,000
- Fixed Costs:
- Total Fixed Costs = Rs. 200,000
- Net Income:
- Net Income = Contribution Margin - Fixed Costs = Rs. 230,000 - Rs. 200,000 = Rs. 30,000
Income Statement for Current Year (Variable Costing)
- Sales Revenue:
- Sales = Rs. 1,505,000 (same as above)
- Variable COGS:
- Variable Cost = Rs. 840,000 (same as above)
- Contribution Margin:
- Contribution Margin = Sales Revenue - Variable COGS = Rs. 1,505,000 - Rs. 840,000 = Rs. 665,000
- Fixed Costs:
- Total
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The following is the cost information of a product variable manufacturing cost rupees 4 per unit fixed manufacturing cost rupees 200000 per year the normal capacity as set at 2 lakh units there are no work in progress inventories last year the form produced to lact 10000 units and sold 90% at a price of rupees 7 per unit in the current year the form produce 2 lakh 10000 units and Soul 215000 unit at the same price prepare income statement for both the year based on absorption costing and variable cost?
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The following is the cost information of a product variable manufacturing cost rupees 4 per unit fixed manufacturing cost rupees 200000 per year the normal capacity as set at 2 lakh units there are no work in progress inventories last year the form produced to lact 10000 units and sold 90% at a price of rupees 7 per unit in the current year the form produce 2 lakh 10000 units and Soul 215000 unit at the same price prepare income statement for both the year based on absorption costing and variable cost? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The following is the cost information of a product variable manufacturing cost rupees 4 per unit fixed manufacturing cost rupees 200000 per year the normal capacity as set at 2 lakh units there are no work in progress inventories last year the form produced to lact 10000 units and sold 90% at a price of rupees 7 per unit in the current year the form produce 2 lakh 10000 units and Soul 215000 unit at the same price prepare income statement for both the year based on absorption costing and variable cost? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The following is the cost information of a product variable manufacturing cost rupees 4 per unit fixed manufacturing cost rupees 200000 per year the normal capacity as set at 2 lakh units there are no work in progress inventories last year the form produced to lact 10000 units and sold 90% at a price of rupees 7 per unit in the current year the form produce 2 lakh 10000 units and Soul 215000 unit at the same price prepare income statement for both the year based on absorption costing and variable cost?.
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