Absorption and Marginal Costing
ICAN Management Information

Zaria Consumer Goods Limited (ZCGL) manufactures a single standard household cleaning product, 'CleanMax', at its factory in Kaduna State. The management accountant of ZCGL is preparing the monthly pe…

Eko Plastics Limited, a manufacturing company based in Lagos, produces a single product called 'PlastoPak'. The following information relates to the company's operations for the month of October 2024:…

Abuja Furniture Works Limited manufactures a premium office chair branded 'ExecuSeat'. The company operates a standard costing system and uses absorption costing for its financial statements. However,…

Kano Textile Mills Plc produces two products: 'KanoWeave' (KW) and 'KanoSheen' (KS). The company currently uses absorption costing for all internal and external reporting. The Board of Directors is re…

Which of the following statements correctly describes the treatment of fixed production overheads under IAS 2 (Inventories) as adopted in Nigeria through the Financial Reporting Council of Nigeria (FR…

Enugu Plastics Limited sells its product at ₦850 per unit. Variable production cost is ₦320 per unit, variable selling cost is ₦80 per unit, fixed production overhead is ₦2,250,000 per annum, and fixe…

Abuja Furniture Works Limited has a contribution to sales (C/S) ratio of 40% and fixed costs of ₦9,600,000 per annum. The company wishes to achieve a target profit of ₦2,400,000 before tax. Ignoring C…

Under marginal costing, which of the following costs would be included in the valuation of closing inventory of finished goods for a manufacturing company filing returns under the Companies Income Tax…

Port Harcourt Chemicals Limited produced 20,000 units and sold 17,500 units during the quarter ended 30 September 2024. The following cost data applies: Variable production cost ₦450 per unit; Fixed p…

Ibadan Textiles Limited has the following data for October 2024: Sales ₦18,000,000; Variable cost of sales ₦10,800,000; Fixed production overhead absorbed ₦2,400,000; Over-absorption of fixed producti…

Lagos Breweries Plc operates three product lines: Alpha, Beta, and Gamma with contribution margins of ₦200, ₦350, and ₦150 per unit respectively. Fixed costs directly attributable to each line are ₦1,…

Kaduna Steel Products Limited manufactures a single product with the following annual data: Selling price ₦1,200 per unit; Variable cost ₦720 per unit; Fixed costs ₦14,400,000. The company currently s…

Zaria Manufacturing Limited produces a single product. Fixed production overhead for the period is ₦4,800,000 and budgeted production is 40,000 units. Actual production is 48,000 units and actual sale…

Kano Components Limited reports the following for March 2024: Opening inventory 2,000 units, Closing inventory 5,000 units, Fixed production overhead ₦6,000,000, and budgeted/actual production 30,000 …