the whole question 1

[ASSIGNMENT 1 - 100 MARKS] QUESTION 1 25 MARKS Namib Processor Limited makes and sells one product. The standard production cost per unit is as follows: Direct Labour Direct Material Production overhead Production overhead 3 hours @ N$ 6 per hour 4 kg @ N$ 7 per kg Variable Fixed Standard Production cost NS 18 28 3 20 69 Normal output is 16 000 units per annum and this figure is used for the fixed production overhead calculation. Cost relating to selling, distribution and administration are: Variable is 20% of sales value Fixed is N$ 180 000 per annum The only variance is a fixed production overhead volume variance. There are no units in finished goods stock at 1 October 2017. The fixed overhead expenditure is spread evenly throughout the year. The selling price per unit is N$ 140.00 The number of units to be produced and sold for the two six monthly period detailed bellow is budgeted as follows; Production Sales Six months ending 31 March 2017 8500 7 000 Six months ending 30 September 2017 7 000 8 000 REQUIRED: 1.1 Prepare the statements of comprehensive income for the two six monthly periods as per, (a) Variable costing method (b) Absorption costing method (c) Reconcile the profit between the two methods