Reference no: EM132549671
Limited makes and sells a single product . The following data relate to periods 1 to 4
sh.
Variable cost per unit 30
Selling price per unit 55
Fixed costs per period 6,000
Normal activity is 500 units and production and sales for the four periods are as follows :
Period 1 units Period 2 units Period 3 units Period 4 units
Sales 500 400 550 450
Production 500 500 450 500
There were no opening stocks at the start of period 1
Required
Question 1: Prepare operating statements for each of the periods 1 to 4 , based on marginal costing principles
Question 2: Prepare operating statements for each of the periods 1 to 4 , based on absorption costing principles.
Question 3: Comment briefly on the results obtained in each period and in total by the two systems.
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