Alpha Ltd manufactures one product. Budgeted production is 8000 units per year. During the year, the budgeted costs are expected to be: 

The opening inventory was expected to be 200 units and closing inventory 400 units. 

Each unit is expected to sell for $4 and 7800 units are expected to be sold. Prepare expected profit statements for the year using: 

a. Absorption costing absorbing fixed overheads on a per unit basis 

b. Marginal costing.

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Direct materials 2 000 Direct labour 14 000 Fixed overheads 12 000