4. Raul James produces a single product and has a budgeted capacity of 3,000 units monthly. At the start of February 2016, there were 625 units of the product in stock. During the month, the company sold one unit of the product for $1,100. Sales for the month amounted to 4,250 units and there were 300 units of the product in store at the end of the month. Administrative and selling overheads for the month were $555,000 and $485,000 respectively. The following information relating to the product was also extracted from the accounting records: Cost per unit Details Direct materials Direct labour Variable overheads Fixed production overheads Total Required: (a) Determine the amount of production for February 2016. marks) $ 150 175 45 370 150 520 **** (2 (b) Prepare profit statement using Marginal Costing techniques for February 2016. (5 marks) (c) Prepare profit statement using Absorption Costing techniques for February 2016.

4. Raul James produces a single product and has a budgeted capacity of 3,000 units monthly. At the start of February 2016, there were 625 units of the product in stock. During the month, the company sold one unit of the product for $1,100. Sales for the month amounted to 4,250 units and there were 300 units of the product in store at the end of the month. Administrative and selling overheads for the month were $555,000 and $485,000 respectively. The following information relating to the product was also extracted from the accounting records: Required: (a) Determine the amount of production for February 2016. (2 marks) (b) Prepare profit statement using Marginal Costing techniques for February 2016. (5 marks) (c) Prepare profit statement using Absorption Costing techniques for February 2016