Business, 13.01.2022 18:50 nourmaali

Enusah Motors Limited assembles and sells motor vehicles. It uses an actual costing system, in which unit costs are calculated on a monthly basis. The selling price per motor vehicle is ¢44,000. Data relating to January, February and March of 2020 are: January February March Unit data: Production (units) 1000 1000 900 Sales (units) 900 1040 940 100 60 20 Variable-cost data: Manufacturing costs per unit produced ¢16,000 ¢16,000 ¢16,000 Selling and Admin costs per unit sold 8,000 8,000 8,000 Fixed-cost data Manufacturing costs ¢2,400,000 ¢2,400,000 ¢2,400,000 Selling and Admin costs ¢1,600,000 ¢1,600,000 ¢1,600,000 Required: Compute the product cost per unit under both variable and absorption costing methods Present income statements for Enusah Motors in January, February and March of 2020 under Variable costing Absorption costing. Reconcile and explain the differences in operating profits under both costing methods

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Enusah Motors Limited assembles and sells motor vehicles. It uses an actual costing system, in which...

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