Using the information below, list profit statements for June and July using (a) margincosting and (b) absorption costing.
A company produces and sells 1 product only which sells for Rs. 50 per unit. There were no stocks at the end of May and other information is as follows: Rs. Standard cost per unit Direct material 18 Direct wages 4 Variable production overhead 3 Budgeted and actual fixed costs per month Fixed production overhead 99,000 Fixed selling expenses 14,000 Fixed administration expenses 26,000 Variable selling expenses 10% of sales value Normal capacity is 11,000 units per month. The number of units produced and sold was: June July Units units Sales 12,800 11,000 Production 14,000 10,200