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ACCY918: Applied Management Accounting

   

Added on  2021-04-16

8 Pages923 Words42 Views
Running head: ACCY918Accy918Name of the studentName of the universityStudent IDAuthor note

1ACCY918 Table of ContentsPart (F) – Income statement.......................................................................................................2Part (G) – Budgeted income statement for 2018........................................................................5Reference....................................................................................................................................6

2ACCY918 Part (F) – Income statementAnswer 1 – Absorption costing income statementNet income as per absorption costing is computed as follows –ParticularsAmountSalesXXXLess: Cost of goods soldXXXGross marginXXXLess: Selling and admin expensesXXNet IncomeXXWhere the cost of goods sold is calculated as follows – Cost of goods sold = Opening balance of inventories + manufacturing cost for the period –Closing balance of inventories (Black and Al-Kilani 2013)As per the annual report 2017 of Brickworks Limited,Cost of goods sold = $ 559,099Opening inventory = $ 7,998Closing inventory = $ 7,300Therefore, manufacturing cost for the period = $ 559,099 - $ 7,997 + $ 7,300 = $ 558,402The manufacturing cost = Direct materials + Direct labour + Variable manufacturingoverhead + fixed manufacturing overhead (Aurora 2013)Let’s assume that the selling unit = 30,00,000 units at the rate of $ 280.61Break up for manufacturing costs are as follows –

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