Faisal Company is a small business which has the following marginal costing profit and loss account for the month ended June 2016.

Rs. Rs.

Sales 96,000

Cost of sales:

Opening Finished goods 6,000

Production Cost (Material + Labour + FOH) 72,000

Closing Finished goods (14,000) (64,000)

Gross contribution margin 32,000

Other variable cost-Selling expense (6,400)

Contribution margin 25,600

Fixed cost:

Factory Overhead 8,000

Administration 9,600 (17,600)

Net profit 8,000

Cost per unit is:

Rs.

Direct material 16

Direct labour 18

Variable factory overhead 6

Budgeted selling price per unit is Rs.60

The companys normal level of activity is 4,000 units per month. It has a fixed production costs at Rs.8,000 per month and absorbed them on the normal level of the activity of units produced.

Required:

Calculate following throught absorption costing

Sold: units

Production units

Direct Material

Direct Labour

Variable Overhead

Fixed overhead applied

Total manufacturing Cost

Closing Finished Goods

Opening Finished Goods

Under or over applied

Gross profit

Net Profit

Required: Calculate following throught absorption costing Sold: units Production units Direct Material Direct Labour Variable Overhead Fixed overhead applied Fixed overhead applied Total manufacturing Cost Closing Finished Goods Opening Finished Goods Under or over applied Gross profit Net Profit