Absorption cost
Cloud Ltd., produces 8,000 units of product Z during the year ended 31/12/2018. 6,000 of these units were sold at sh6 per unit. The production costs were as follows: Direct Materialssh0.50 per unitDirect Labour sh0.80 per unitVariable Overhead sh0.50 per unitFixed Overhead Cost for the year sh3,000 You are required to:(a) Prepare income statements under …
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