Prepare the Statement of Profit and Loss for month of June

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Question - Standard Cost per pack: RM Direct material 6 Direct labour 3 Production overhead 15 Selling and administrative overhead 8 Additional information:

i) Variable production overhead is only 40% of the production overhead per pack.

ii) 75% of selling and administrative overhead per pack is fixed. It is based on budgeted production units.

iii) Total fixed production overhead absorbed is based on actual production units for the month.

iv) The company's budgeted level and actual production is fixed at 3,000 pack per month.

v) Selling price is at RM26.50 per pack.

vi) Stock at the beginning of the month is 1,000 packs and the company is able to sell 4,000 packs this month. Madam Lysa has asked you to help her determine the profit or loss of her new product, "kurma kambing".

Required - Prepare the Statement of Profit and Loss for the month of June 2021 using: i) Absorption costing method ii) Marginal costing method.

Reference no: EM133032400

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