Absorption Costing Income Statement for Waltex Sdn Bhd for the Year 2019
Sales (4000 units x RM80) = RM320,000
Cost of Goods Sold:
Variable Costs:
Direct materials: 8000 units x RM16 = RM128,000
Direct labour: 8000 units x RM16 = RM128,000
Production overhead: 8000 units x RM8 = RM64,000
Fixed Production Overhead: RM96,000
Total Cost of Goods Sold = RM416,000
Gross Profit = Sales - Cost of Goods Sold
Gross Profit = RM320,000 - RM416,000
Gross Profit = -RM96,000
Selling and Administration Costs:
Variable Selling Cost: 4000 units x RM0.10 = RM400
Fixed Selling and Administration Costs: RM40,000
Total Selling and Administration Costs = RM40,400
Net Income = Gross Profit - Selling and Administration Costs
Net Income = -RM96,000 - RM40,400
Net Income = -RM136,400
Note: The negative Net Income indicates that the company incurred a loss in the year 2019.
Waltex Sdn. Bhd. produces electronic components which are sold RM80 each The data below relates to cost of its opeartion in the year 2019:
Sales 4000 units
Production 8000 units
Variable cost per unit
Direct materials Rm 16
Direct labour Rm 16
Production overhead Rm 8
Variable selling cost per unit Rm 0.10
Fixed production overhead incurred Rm 96000
Fixed selling and administration costs Rm 40,000
Required:
Prepare an absorption costing income statements of Waltex Sdn Bhd for the year 2019.
1 answer
1 answer