Question E2

Clean-Soap (M) Sdn. Bhd. produces a special type of chicken sausage for its customers in Malaysia. The following information was provided by the company for the first two months of 2019:

Per unit:	RM
Selling price	40
Production costs:
Direct materials	10.00
Direct labour	6.00
Variable factory overheads	2.00
Fixed selling costs per month	60,000
Fixed production costs per month	54,000

Actual details for the months are as follows:

	January	February
Production in units	60,000	65,800
Sales in units	56,000	59,600

Additional information:

1. The opening inventory on 1 January 2019 was 10,500 units.
2. Variable selling expenses for both January and February are RM 448,000 and RM 476800 respectively.

Required:

Prepare an income statement for each of the two months ended 28 February 2019, using marginal costing method. (Total=10 marks)