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