Homework answers / question archive / UBS Ltd began operations on 1 January, and achieved the following results for the year: Sales     24000 units Selling Price $30 per unit Manufacturing costs: Direct materials $8 per unit Direct labour $4 per unit Variable overhead $6 per unit Fixed manufacturing overhead $200,000 Selling and administrative costs: Variable $2 per unit sold Fixed $20,000 Production     25000 units   Required: Prepare an absorption costing income statement for UBS Ltd

UBS Ltd began operations on 1 January, and achieved the following results for the year: Sales     24000 units Selling Price $30 per unit Manufacturing costs: Direct materials $8 per unit Direct labour $4 per unit Variable overhead $6 per unit Fixed manufacturing overhead $200,000 Selling and administrative costs: Variable $2 per unit sold Fixed $20,000 Production     25000 units   Required: Prepare an absorption costing income statement for UBS Ltd

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UBS Ltd began operations on 1 January, and achieved the following results for the year: Sales     24000 units

Selling Price

$30 per unit

Manufacturing costs:

Direct materials

$8 per unit

Direct labour

$4 per unit

Variable overhead

$6 per unit

Fixed manufacturing overhead

$200,000

Selling and administrative costs:

Variable

$2 per unit sold

Fixed

$20,000

Production

 

 

25000 units

 

Required:

1. Prepare an absorption costing income statement for UBS Ltd. 
2. Prepare a variable costing contribution margin statement for UBS Ltd. 
3. Reconcile the differences between the profits under the two statements by using the short-cut method