Reference no: EM132608406

The actual data are as follows

Production 300,000 units
Sales 250,000 units
Fixed Overhead $2,250,000
Fixed Selling $250,000

The unit cost for each item is listed below

Direct material $37.50
Direct labour $25.00
Direct expenses $12.50
Variable overheads $11
Variable selling $14
One cheesecake sold for $250

Note: At the beginning of the period the entity had 30,000 units of cheesecake

Required

Question 1: How do calculate income statement using marginal costing

Question 2: How do calculate income statement using absorption costing

Question 3: How to Reconcile profits between marginal costing and absorption costing

Question 4: Explain the terms normal loss and abnormal loss and abnormal gain