FOR REVISION PURPOSE

A company manufactures a single product for which the following data based on a budgeted capacity of 80,000 units per month, are as follows:

Stock, output and sales data (in units)

Details	January
Sales	72,000
Closing stock	2,000
Production	70,000

Cost Data Per unit

Details	$
Direct materials	10
Direct labour	15
Variable Production overheads	25
Fixed Production overheads	30

Fixed administrative and selling overheads were estimated at $350,000 and $250,000 respectively. During the month, the company sold one unit of its product for $200.

Calculate:

Marginal Cost per unit

Full Cost per unit

Opening stock in units

Sales Revenue for the quarter

Cost of Sales using Marginal Costing

Total Contribution

Profit as per Marginal Costing statement

Unadjusted cost of sales

Adjusted Cost of Sales

Gross Profit using Absorption costing

Total Other Expenses using Absorption Costing for the quarter

The net profit using Absorption Costing

Fixed production overheads was over or under absorbed and by how much?