You are required to ascertain profit and loss under (i) marginal-costing- and (ii) absorption-costing method from the following data:
Basic production data:
Normal volume of production = 20,000 units per period.
|
Sales price |
= Rs. 5 per unit. |
|
Variable cost |
= Rs. 3 per unit. |
|
Fixed cost |
= Re 1 per unit. |
|
Total fixed cost |
= Rs. 20,000 (20,000 × Re 1). |
Selling and distribution costs (not available).
The opening and closing stocks consist of both finished goods as well as equivalent units of WIP.