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4. Mmina Car Manufactures Ltd produces 150 Beetle cars in a month. The cost details are given below: Material Cost P3,000 Labour Cost P4,500 Overhead

4. Mmina Car Manufactures Ltd produces 150 Beetle cars in a month. The cost details are given below: Material Cost P3,000 Labour Cost P4,500 Overhead Expenses to production P6,000 (of which P2,100 is fixed expenses) Mmina charges P250 for each Beetle car as its selling price. The Directors of Mmina Car Manufactures Ltd asked you to calculate the cost per unit of Beetle car as per- (i) Marginal costing Method. (5 marks) (ii) Absorption costing Method. (5 marks) (iii) Prepare the profit /loss statement under both the methods. (5 marks) (iv) Which method would you advice Mmina directors to use and why? (5 marks

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