QUESTION $2(20$ Marks$)$

REQUIRED

Use the information given below to prepare the Income statement of Kendall Manufacturers for October $2023$

using the following methods:

$2\mathrm{.}1$ Marginal costing $(10$ marks$)$

$2\mathrm{.}2$ Absorption costing. $(10$ marks$)$

INFORMATION

The following information was provided by Kendall Manufacturers for the only product produced during

October $2023$:

Opening inventory Nil

Number of units manufactured $5000$

Sales R$4200000$

Selling price per unit R$1000$

Variable manufacturing costs per unit R$425$

Fixed manufacturing overhead cost R$325000$

Variable selling cost per unit R$80$

Fixed selling cost R$175000$

Fixed administrative cost R$200000$