1. prepare the operating statements for CTX furniture for each of the periods one to four based on absorption costing and marginal costing principles. provide 8 statements for both costing principle

enland is seasollal, und, us a consequence luctuates throughout the year. An absorption cost a Lonsequence, this finished goods An absorption costing system is used to sts. The following data relates to one of CTX attribute all manufacturing misher's products for four periods. Variable cost per unit Selling price per unit Fixed cost per period 3 000 5 500 600 000 Normal activity is 500 units and production and sales for the four periods are as follows: Period 1 Units 500 500 Period 2 Units 400 500 Period 3 Units 550 450 Sales Production Period 4 Units 450 500 There were no opening inventories at the start of period one. CTX Furnishers is planning to launch a new range of multi-purpose furniture next year, which home owners can use as a dining table, computer cable and a study station for kids. This product is called "fait tout" and a pricing strategy is currently being considered. The product will be unlike any other product that is available at present and will improve the efficient use of space considerably. Most residents in the area live in flats with limited space. CTX Furnishers anticipates that its advantage in the market place will only last three months, before competitors develop a similar product