E2 fx Evaluator's comments: B Krishnanand Furniture produces and sells one brand of moulded doors whose selling price is Rs. 11,250 per unit. Other costs relating to the year 2020 are given as under: 1 2 Selling price (per unit) 3 Direct Material (per unit) 4 Direct Labour (per unit) 5 Variable overheads (per unit) *11,250 2,000 1,500 500 6 Fixed manufacturing overheads (per quarter) 7 Variable selling expenses (per unit) *60,00,000 250 8 Fixed selling expenses (per quarter) 7,50,000 The costs and selling price are the same for the first and second quarters of 2020. The budgeted production for each quarter is expected to be 3,000 units of the doors. There is no opening inventory in the first quarter. There are no losses in the process. The production and sales data for the two quarters is also given as under: 9 10 11 Units Produced 12 Units sold 13 Prepare the Income statements for both quarters using the Q1 2,900 Q2 3,500 2,500 3,750 E (5+5=10 MARKS) Marks Obtained Bring out the cost of inventory in both methods and find out the extent of over or under absorption of overheads wherever applicable. 14 a. Full (absorption) costing 15 b. Variable costing methods 16 17 18 19 20 21 | < < | ANSWER & CALCULATIONS Instructions 01 02 03 04 05 06 Evaluator's comments: