Adam Ltd is a producer of product Wale. In a period, it produced 20,000 units and sold 18,000 units of product Wale. The selling price per unit of the output is GH¢5. In the planned production period, relevant cost and revenue data were stated as:

GH¢

Sales 100,000

Production cost:

Variable 35,000

Fixed 15,000

Administration and selling overheard:

Fixed 25,000

Required: Prepare a profit or loss statement based on the following costing systems:

i) Marginal costing systems.

ii) Absorption costing systems. 

Answer rating: 100% (QA)

Firstly lets understand what Marginal Costing and Absorption Costing are 1 Marginal Costing This is ... View the full answer