you are required to present comparative profit statements using 1 absorption costing 608709
The following data relate to a company which makes and sells computers and accessories:
May |
June |
|
Sales (units) |
2,500 |
5,000 |
Production (units) |
5,000 |
2,500 |
Selling price per unit |
200 (Rs.) |
200 (Rs.) |
Variable production cost per unit |
100 |
100 |
Fixed production overhead incurred |
1,00,000 |
1,00,000 |
Fixed production overhead cost per unit, being the |
20 |
20 |
predetermined overhead absorption rate |
||
Selling, distribution and administration cost (all fixed) |
50,000 |
50,000 |
You are required to present comparative profit statements using: (1) absorption costing and (2) marginal costing