QUESTION $2$

$(20$ Marks$)$

REQUIRED

Use the information given below to prepare the Income Statement for the month ended $29$ February $2024$ using the following methods:

$2\mathrm{.}1$

Marginal costing

$(10$ marks$)$

$2\mathrm{.}2$

Absorption costing.

$(10$ marks$)$

INFORMATION

The following information relates to the only product produced by Umdloti Manufacturers during February $2024$:

Opening inventory

Nil

Number of units manufactured

$2500$

Sales

R$2500000$

Selling price per unit

R$1250$

Direct material cost per unit

R$110$

Direct labour cost per unit

R$180$

Variable manufacturing overheads cost per unit

R$100$

Variable marketing and administrative cost per unit sold

R$20$

Fixed manufacturing overhead cost

R$500000$

Fixed marketing and administrative cost

R$250000$