Marginal and Absorption costing
Toys (Pty) Ltd is a cupboard manufacturing concern. The following information was obtained from the records for the month ended 31 January 2007:
Units
Opening stock 6 000
Budgeted units from this month 20 000
Actual Production 22 000
Actual Sales 24 000
Actual selling price per unit $ 50.00
Actual variable cost per unit $ 20.00
Actual and budgeted fixed overheads for the month $ 120 000
Question:
Prepare profit statements to clearly show the results for the month ending 31 January 2007 by using the following methods: Marginal costing system
Absorption costing system