From the following figures, you are required to prepare cost and profit statements for the months of November and December 2009 under marginal-costing and absorption-costing methods:
|
Normal sales: |
50,000 units |
|
Selling price: |
Rs. 6.25 each |
|
November 2009: |
120% of normal capacity production; Sales 40,000 units |
|
December 2009: |
84% of normal capacity production; Sales 60,000 units. |
|
Manufacturing cost: |
|
|
Direct materials: |
Re 1 per unit |
|
Direct labour: |
Re 1.50 per unit |
|
Manufacturing overhead: |
Rs. 70,000 (of which, Rs. 25,000 are variable) |
|
Selling expenses: |
|
|
Commission: |
Re 0.25 per Unit |
|
Fixed selling expenses: |
Rs. 12,500 |
|
Administrative expenses: |
Rs. 10,000 |
|
Research & Development expenses: |
Rs. 2,000 |