Bolte Manufacturing operations for 2017are as follows:

$

Per unit:

Sales price50

Direct material cost18

Direct wages4

Variable production overhead3

Per month:

Fixed production overhead 99 000

Fixed selling expenses14000

Fixed administration expenses26000

Variable selling expenses is 10% of sales value.

Normal capacity was 11000 units per month.

JanuaryFebruary

UnitsUnits

Sales1000012000

Production 1200010000

Using the two methods:

A. Compute the unit production cost(4marks)

B. Determine the value of the closing inventory (7marks)

C. Prepare the Marginal Income Statement and the Absorption Income Statement for March and April (22 marks)