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