QUESTION 2

(20 Marks)

REQUIRED
Use the information givenbelow to prepare the Income statement of Kendall Manufacturers for October 2023 using the following methods:
2.1	Marginal costing	(10 marks)
2.2	Absorption costing.	(10 marks)

INFORMATION
The following information was provided by Kendall Manufacturers for the onlyproduct produced during October 2023:
Opening inventory	Nil
Number of units manufactured	5 000
Sales	R4 200 000
Selling priceper unit	R1 000
Variable manufacturing costs per unit	R425
Fixed manufacturing overhead cost	R325 000
Variable sellingcost per unit	R80
Fixed sellingcost	R175 000
Fixed administrative cost	R200 000