Question

6. ABC Motors assembles and sells Motor Vehicles at 24,000 per Vehicle. It uses an actual costing system, inwhich unit costs are calculated on a monthly basis. Data relating to March and April months of a year are:MarchParticularsUnit data : Beginning InventoryProductionSalesApril150050040052035010,0003,000*10.0003,000Variable Cost Data:Manufacturing Costs per unit producedDistribution Costs per unit soldFixed Cost Data:Manufacturing CostsMarketing Costs20,00,000* 6,00,000* 20,00,0006,00,000a.Present Income Statements for ABC Motors in March and April under - (a) Variable Costing, (b) AbsorptionCosting.b. Explain the differences between (a) and (b) for March and April​

Answer 1

Explanation:

Beginning InventoryProductionSalesApril150050040052035010,0003,000*10.0003,000Variable Cost Data:Manufacturing Costs per unit producedDistribution Costs per unit soldFixed Cost Data:Manufacturing CostsMarketing Costs20,00,000* 6,00,000* 20,00,0006,00,000a.