Page 214 - P1 Integrated Workbook STUDENT 2018

Chapter 12

Example 4

Calculate the absorption costing profits for Limco.

Solution

$

Marginal costing profit 520,000
Change in inventory × fixed overheads per unit

3,000 units × $10 per unit 30,000
–––––––

Absorption costing profit 550,000
–––––––

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