The following information has been extracted from the records of a company; Per unit GH Selling...

 

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The following information has been extracted from the records of a company; Per unit GH¢ Selling price 10 Direct material cost Direct labour cost Variable production overhead Variable selling cost 0.5 Per month: Fixed production overheads 2,500 Fixed selling costs 600 Fixed administrative expenses 900 There were no opening inventory at the start of January. The budget forecast that, production would equal sales at 1,000 units per month. Actual results for the first quarter of 2021 were as follows: January February March Production (in units) 1,000 1,100 900 Sales (in units) 1,000 800 1,200 Required: Prepare income statement under marginal and absorption costing principles. The following information has been extracted from the records of a company; Per unit GH¢ Selling price 10 Direct material cost Direct labour cost Variable production overhead Variable selling cost 0.5 Per month: Fixed production overheads 2,500 Fixed selling costs 600 Fixed administrative expenses 900 There were no opening inventory at the start of January. The budget forecast that, production would equal sales at 1,000 units per month. Actual results for the first quarter of 2021 were as follows: January February March Production (in units) 1,000 1,100 900 Sales (in units) 1,000 800 1,200 Required: Prepare income statement under marginal and absorption costing principles.

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