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From the following cost, production and sales data of Decors Motor Ltd., prepare comparative income statement for three years under (i) absorption costing method, and (ii) marginal costing method. Indicate the unit cost for each year under each method. Also evaluate the closing stock. The company produces a single article for sale.
Particulars
Year
2008
2009
2010
Selling Price per unit
20
Variable manufacturing cost per unit
10
Total fixed manufacturing cost
5000
Opening Stock (Units)
-
500
Units Produced
1000
1500
2000
Units Sold
Closing Stock (Units)
the objectives ?
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what is the ambiguity
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