olicoeur Ltd produces and markets a single product. Following budgeted
information is available from the firms records for the month of March and April
:
March April
Sales units units
Production units units
Standard costs:
Direct materials per unit kg at Rs per kg
Labour per unit minutes at Rs per hour
Variable production overheads Rs per labour hour
Variable selling expenses Rs per unit
Fixed selling expenses Rs
Fixed production overheads, at a normal output level of units per month, are
estimated at Rs The estimated selling price is Rs per unit. Actual fixed
production overheads amounted to Rs and Rs for the months of
March and April respectively.
Required:
Assuming there are no opening stocks at the start of March, prepare the firms profit
and loss statement for the months of March and April using marginal costing
and absorption costing.
