Question

Bilal Manufacturing Co. uses direct costing. Following information have been received from their accounting records for a single product at the end of the year:

Planned Production in units
30,000

Actual Production in units
30,000

Actual sales in units
30,000



Fixed Costs (Rs.)
Variable Costs (Rs.)

Raw Materials

15

Direct Labor

20

FOH

10


Rs. 90,000 or Rs. 3 per unit sold under the absorption costing


Marketing and Administrative Costing
Rs. 80,000
60,000


Note: Selling price of each single unit is Rs. 150.

Required
Prepare operating income statement by direct costing approach.

Answer 1

Answer:

a

Explanation: