单选题 The following information was extracted from the ledgers of Billy Company for its products for the year ended 31 December 2002: ＄ Sales (100,000 units) 500,000 Direct materials 100,000 Direct wages 70,000 Fixed production overheads 110,000 Variable production overheads 20,000 Administration expenses (60% fixed, 40% variable) 80,000 Selling expenses (60% fixed, 40% variable) 130,000 Required: (a)Prepare the Profit and Loss Statement by using Absorption Cost method. (b)Prepare the Profit and Loss Statement by using Marginal Cost method.

【正确答案】

【答案解析】(a) Profit and Loss Statement by using Absorption Cost method. ＄＄ Sales 500,000 Less: Cost of goods sold Direct materials 100,000 Direct wages 70,000 Fixed production overheads 110,000 Variable production overheads 20,000 300,000 Gross profit 200,000 Less: Expenses Administration expenses 80,000 Selling expenses 130,000 210,000 Loss (10,000) (b) Profit and Loss Statement by using Marginal Cost method. ＄＄ Sales 500,000 Less: Variable costs Direct materials 100,000 Direct wages 70,000 Variable production overheads 20,000 Administration expenses (Variable) 32,000 Selling expenses (Variable) 52,000 274,000 Contribution 226,000 Less: Fixed costs Fixed production overheads 110,000 Administration expenses (Fixed) 48,000 Selling expenses (Fixed) 78,000 236,000 Loss (10,000)