At the end of June 2019, there were 650 units of a product manufactured by Maloney Manufacturing. The company has a budgeted capacity of 12,000 units and during the month, one unit of the product was sold for $500. Production and sales for the month amounted to 14,000 units and 16,000 units respectively. Administrative, selling and production overheads were estimated at $80,000, $65,000 and $60,000 respectively. The following information relating to the product was also extracted from the financial records:

Cost per unit

Details $

Direct materials 150

Direct labour 100

Variable overheads 45

Total 295

Required:

(a) Determine the amount of stock in store at the start of the month. (3 marks)

(b) Calculate the full cost per unit of production for March 2021. (5 marks)

(c) Prepare profit statement for the month using Marginal Costing. (12 marks)

(d) Prepare profit statement for the month using Absorption Costing. (14 marks)

(e) Prepare a reconciliation of the profits using the above costing methods (6 marks)