FACULTY OF ECONOMIC & MANAGEMENT SCIENCES AAM3692 Assignment 1 2021 Question 1 (26 Marks) Table Makers CC (TM), is a company that manufactures and sells large size tables. Such large size tables are mainly used in the offices of the executives. A table is sold for N$800. Provided below is the company's data for 2020: Manufacturing costs: Direct materials per unit Direct labour per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per annum (N$) 240 120 40 1 200 000 Non-manufacturing costs: Variable selling administrative per unit Fixed selling administrative per annum 80 1 800 000 Additional information: There was neither opening inventory nor any work in progress at the beginning of the year. A total of 10 000 tables were produced during 2020 of which 90% were sold. REQUIRED: MARKS 1.1 1.2 Under variable costing method, determine the production cost per table. Prepare a profit statement for the year under the variable (marginal) costing method. 5 9 1.3 Prepare a profit statement for the year under the absorption costing method. 8 1.4 Prepare a reconciliation schedule to show why there is a difference in profits. 4 TOTAL MARKS 26