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  • Absorption Costing and Marginal Costing Proforma

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    beryl_hst
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    The document contains two profit statements - one using absorption costing and one using marginal costing. The absorption costing statement calculates gross profit by deducting total production costs and period non-production costs from sales revenue. The marginal costing statement calculates contribution by deducting variable production and non-production costs from sales revenue, and then deducts total fixed costs to determine net profit. Both methods use unit costs and inventory quantities to calculate the respective cost of goods sold.

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    The document contains two profit statements - one using absorption costing and one using marginal costing. The absorption costing statement calculates gross profit by deducting total production costs and period non-production costs from sales revenue. The marginal costing statement calculates contribution by deducting variable production and non-production costs from sales revenue, and then deducts total fixed costs to determine net profit. Both methods use unit costs and inventory quantities to calculate the respective cost of goods sold.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    816 views1 page

    Absorption Costing and Marginal Costing Proforma

    Uploaded by

    beryl_hst
    The document contains two profit statements - one using absorption costing and one using marginal costing. The absorption costing statement calculates gross profit by deducting total production costs and period non-production costs from sales revenue. The marginal costing statement calculates contribution by deducting variable production and non-production costs from sales revenue, and then deducts total fixed costs to determine net profit. Both methods use unit costs and inventory quantities to calculate the respective cost of goods sold.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Profit Statement: Absorption Costing

    Sales Revenue (SP x Sales unit) X


    Less: Production Cost of Sales (TPC/U x Sales unit)
    Opening stock (TPC/U x O/S) X
    Production (TPC/U x Production units) X Production Costs
    X
    Closing stock (TPC/U x C/S) (X) (X)
    Gross Profit (before adjustment) X
    Adj: Over / (Under) absorption of overhead X/(X)
    Gross Profit (after adjustment) X
    Less: Non production costs
    -Variable cost (VNPC/U x Sales) X Non Production
    -Fixed cost (Total in a period) X (X) Costs
    Net Profit/Loss X

    Profit Statement: Marginal Costing


    Sales Revenue (SP/U x Sales unit) X
    Less: Marginal Cost of Sales
    Opening stock (VPC/U x O/S) X
    Production (VPC/U x Production units) X
    X
    Closing stock (VPC/U x C/S) (X)
    Variable Production Cost of Sales (VPC/U x Sales unit) X
    Variable Non Production Cost of Sales (VNPC/U x Sales unit) X (X)
    Contribution X
    Less: Fixed cost
    -Production X
    -Non Production X (X)
    Net Profit/Loss X

    Notes:
    SP=Selling Price
    TPC= Total Production Costs
    U=Unit
    O/S= Opening stock
    C/S= Closing stock
    VNPC= Variable Non Production Costs
    VPC=Variable Production Costs

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