Professional Documents
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Salea
Less: Cost Of Goods Sold
Direct Material
Direct Labor
Variable FOH
Fixed FOH
Direct Costing
Salea
Less:Variable Cost Of Goods Sold
Direct Material
Direct Labor
Variable FOH
CONTRIBUTION MARGIN
Less:Fixed Expenses:
Fixed Factory overhead
Fixed Marketing and administrative Expenses
OPERATING INCOME
SUMMER - 2007 or Ex -8 (MU)
Required#1
Salea 480,000
Less: Cost Of Goods Sold
Required# 2
Direct Costing Method
Salea 480,000
Less:Variable Cost Of Goods Sold
Loss (20,000)
Required# 3
RECONCILIATION
Absorption costind Marginal costing Difference
Working# 1
Working# 2
Gross Profit
Less: Marketing and administrative Expenses
Fixed marketing and admin expenses 5,600,000
Variable marketing and admin expenses (8,000 units x 400) 3,200,000
OPERATING INCOME
Operating Income:
Absorption Costing 2,720,000
Direct Costing 800,000
Difference 1,920,000
32,000,000
(20,480,000)
11,520,000
(8,800,000)
2,720,000
32,000,000
(12,800,000)
19,200,000
(3,200,000)
16,000,000
(15,200,000)
800,000
WINTER 2006
Required # 1
Absorption Costing
Year 1 Year 2
Direct Costing
Year 1 Year 2
Salea 32000000 32000000
Less:Variable Cost Of Goods Sold
Direct Material 8800000 5280000
Direct Labor 4800000 2880000
Variable FOH 2400000 1440000
Required# 1
Absorption Costing Method
Salea 4500000
Less: Cost Of Goods Sold
Opening Stock 1100000
Add:Variable manufacturing cost
(24000 units * Rs.50) 1200000
Fixed manufacturing cost 1440000
Cost of Production 3740000
Less:Closing Stock (Rs.4000*110) 440000
Cost Of Goods Sold 3300000
Adjustment of Fixed (over)/ under
applied Factory overhear 360000
Actual Cost of Goods Sold 3660000 1440000
1800000
Gross Profit 840000 360000
Less:Marketing and administrative Expenses
Salea 4500000
Less:Variable Cost Of Goods Sold
Profit 930000
Required# 3
Required # 1
Faricon Corporation
Absorption Costing
Faricon Corporation
Direct Costing
W-1
W-2
MOON COMPANY
Required # 1
Required # 2
Required # 3
RECONCILIATON
Absorption Direct Difference
Net Income 87000 79500 7500
Opening Ending
Inventories 200 350 150
Fixed Cost @50
(150*50) 7500
working # 1
Budgeted FOH 50000
Actual FOH 45000
Under-absorbed FOH 5000
SUMMER 2002
Modern Metal Works
Required # 1(a)
Absorption Costing Method Six Months Ending Six Months Ending
31st March,2002 30th September,2002
4900000 5600000
Required # 1(b)
Direct Costing Method Six Months Ending Six Months Ending
31st March,2002 30th September,2002
4900000 5600000
Less: Variable
Contribution
ExpensesMargin 2205000 2520000
Required # 3
Absorption Direct Difference
RECONCILIATON
First 6 Months 1105000 955000 150000
Sec. 6 Months 1170000 1270000 -100000
Net Income
Net Income
working # 1:
Direct Costing
Salea
Less:Variable Cost Of Goods Sold
Direct Material
Direct Labor
Variable FOH
CONTRIBUTION MARGIN
Less:Fixed Expenses:
Fixed Factory overhead
Fixed Marketing and administrative Expenses
OPERATING INCOME
WINTER - 1998
Solo Limited
working # 1
working # 2
Budgeted Fixed FOH (500*12) 6000
Actual Fixed FOH (450*12) 5400
Under absorption FOH 600
May-92
January February
Sales 80000 120000
Less:Cost of Goods Sold
Direct Mfg. cost 80000 20000
Fixed FOH 24000 6000
COGM 104000 26000
Add:Opening stock 0 52000
Total COGM available 104000 78000
Less:Closing stock 52000 52000 0
Add:under absorb FOH 18000 96000
January February
Sales 80000 120000
Less: variable COGS
Direct Mfg. cost 80000 20000
Add:opening stock 0 40000
Less:closing stock -40000 40000 0 60000
Contribution Margin 40000 60000
Less:Fixed Expenses
Fixed FOH 24000 24000
Selling & Admin. 8000 32000 8000 32000
Net Profit 8000 28000