Q6
The following data relate to Waseem Company, a new corporation, during a period when the firm
produced and sold 100,000 units and 90,000 units, respectively:
Direct materials used
Direct labor
Fixed manufacturing overhead
Variable manufacturing overhead
Fixed selling and administrative expenses
Variable selling and administrative expenses
Rs 400,000
200,000
250,000
120,000
300,000
45,000
The company met its original planned production target of 100,000 units. There were no
variances during the period, and the firm's selling price is Rs 15 per unit.
Required:
a) What is the cost of Waseem's end-of-period finished-goods inventory under the variable-
costing method?
b) Calculate the company's variable-costing net income.
c) Calculate the company's absorption-costing net income.
END OF EXAM PAPER