The question is you're required to prepare profit statement using absorption or marginal costing

..BeSafe Airtel 04:10 Expert Q&A Illustration 2 The scale lent Come Destanl Doura JADEC limited produces bottled wine called JAD wine which is bottled and sold in cases. The normal annual level of production on which. the fixed production overhead absorption is based is 80,000 cases. Data for the financial year ended 31 December 2008 were as follows: Production 90,000 cases Sales 75,000 cases Sales 1,500 Production Direct material----500 Direct labour----400 Variable overhead----200 Fixed production overhead----#1,560,000 Variable selling and distribution cost 10% of sales revenue Fixed selling and distribution cost #150.000 80% Done