During the most recent year, Boston (PTY) Ltd has produced thefollowing data:
| Beginning inventory | |
| Units produced | 15 400 |
| Units sold (R125 per unit) | 8 200 |
| Variable costs per unit: | |
| Direct materials | R13 |
| Direct Labor | R16 |
| Variable Overheads | R8 |
| Fixed Costs | |
| Fixed overhead per unit produced | R23 |
| Fixed selling and administrative | R18 500 |
Required:
1. How many units are in ending inventory
2. Using absorption costing, calculate the per unit -productcost. What is the value of ending inventory?
3. Using variable costing, calculate the per unit -product cost.What is the value of ending inventory?
4. Prepare an income statement using variable costing.
5. Prepare an income statement using absorption costing.
