Svenborg AS manufactures and sells wide-screen television sets. It uses an actual-costing system, in which unit costs are calculated on a monthly basis. Data relating to January, February and March of 2018 are: 

The selling price per unit is DKr 2500. 

Required

1. Present income statements for Svenborg in January, February and March of 2018 under (a) variable costing and (b) absorption costing. 

2. Explain any differences between (a) and (b) for January, February and March.

Transcribed Image Text:

January February March Unit data Opening stock Production 300 300 1 250 1 500 1 000 800 Sales 700 800 Variable-cost data Manufacturing costs per unit produced DKK 900 DKK 900 DKK 900 Marketing costs per unit sold Fixed-cost data 600 600 600 Manufacturing costs Marketing costs DKK 400 000 DKK 400 000 DKK 400 000 140 000 140 000 140 000