Reference no: EM132593983

The information below relates to data concerning a company's operations in a year:

Units in beginning inventory......................... 0

Units produced............................................... 10,000

Units sold....................................................... 9,000

Selling price per unit..................................... RM60

Variable costs per unit:

Direct materials..........................................RM15

Direct labor.................................................RM5

Variable manufacturing overhead..............RM2

Variable selling and administrative............RM4

Fixed costs in total:

Fixed manufacturing overhead...................RM200,000

Fixed selling and administrative................RM70,000

Direct labour here is a variable cost.

Required:

Question 1: Prepare the statement of profit or loss for the year using absorption costing.

Question 2: Prepare the statement of profit or loss for the year using variable costing.