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Costing Method Assignment (Solved)

   

Added on  2020-01-28

10 Pages2370 Words49 Views
Management Accounting
Costing Method Assignment (Solved)_1
Table of ContentsINTRODUCTION......................................................................................................................3PART 1.......................................................................................................................................31. Preparing profit & loss a/c by using both marginal and absorption costing method.........32. Producing a reconciliation statement for each quarter.......................................................5PART 2.......................................................................................................................................5Critically evaluating and assessing absorption costing method in against to marginalsystem.....................................................................................................................................5CONCLUSION..........................................................................................................................8REFERENCES...........................................................................................................................9
Costing Method Assignment (Solved)_2
INTRODUCTION Management accounting is highly concerned with the preparation of daily financialreports in accordance with the cost principles and techniques. This field of finance is highlysignificant which in turn helps company in making suitable business decision. Further,management accounting system also provides assistance to the firm in setting highly suitableprice for the products and services which are offered by it. The present report is based on thecase scenario which will provide deeper insight deeper insight about different types ofcosting methods such as absorption and marginal. PART 11. Preparing profit & loss a/c by using both marginal and absorption costing method Absorption costing method: P& a/cParticulars Quarter 1Quarter 2Sales revenue 1740000019575000Less: Absorption cost of sales Opening stock -2328000Add: Production cost 1164000013968000Total production cost1164000016296000Less: Closing stock23280005820000Absorption cost of production 9312000104760009099000Gross profit808800010263000variable selling overhead 720000810000Fixed sales and distribution overhead 450000450000Less: Total selling and distributionoverhead11700001260000Normal Profit69180007839000Less: Under absorption Net profit 68280007779000P&L statement according to variable costing method:
Costing Method Assignment (Solved)_3

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