MAC2601 ASSESSMENT 4 presentation EXPECTED QUESTIONS(3,4,5) AND ANSWERS

5.1.1
Arbsoption costing Marginal cost
Production cost per unit
Direct Labour 40.00 40.00
Direct Material 16.00 16.00
Variable overheads(1200/80) 15.00 15.00
Fixedx overheads(4400/80) 55.00
126.00 71.00

5.1.2
Sales(180*80000) 14,400,000.00 14,400,000.00
Cost of sales (8,064,000.00) (4,544,000.00)
Opening Inventory - -

add production(126*80000);(71*80000) 10,080,000.00 5,680,000.00
Less closing I
nventory(16000*126);(16000*71) (2,016,000.00) (1,136,000.00)
Gross Profit 6,336,000.00
Contribution 9,856,000.00
Less fixed overheads - (4,400,000.00)
6,336,000.00 5,456,000.00




5.1.3
Less closing I
nventory(16000*126);(16000*71) (2,016,000.00) (1,136,000.00)



5.2) Reconcilliation
Profit as per Arbsoption costing 2,016,000.00
Fixed cost (880,000.00)
Profit as per marginal costing 1,136,000.00




Question 3

Moale (pty)Ltd
2019
Manufactured 1,400.00
Sold (1,000.00)
Closing Inventory 400.00
2020