Income Statement – Solved Sums

Cost & Management Accounting – NMIMS Internal Assignment December 2023 Examination

A product sells at Rs. 3 per unit. The company uses a first-in-out actual costing system. A new fixed manufacturing overhead allocation rate is computed each year by dividing the actual fixed manufacturing overhead cost by the actual production. The following data is available for the first two years:

Prepare Income Statement for each year based on:
a. Absorption Costing
b. Variable Costing

Income statement under absorption costing method
Income statement under variable costing method

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