In question A, does the cost of goods sold of quaeter3 be (60000/450)+300=433.333

The following information is available for quarters 1 to 4 for Solo Limited: The company produces only one product. Normal quarter activity is 500 units and production and sales for the four quarters are as follows. There were no opening stocks at the start of quarter 1 , and the actual fixed manufacturing costs incurred was $60,000 per quarter. It is also noted that the equation of selling and administrative expenses is $8,300+4% of sales per quarter. Allocation based for annual fixed manufacturing costs is on 2,000 units. Required: a. Construct an income statement under absorption costing method for quarters 1 to 4 . (49 marks) b. Construct an income statement under marginal costing method for quarters 1 to 4 . (41 marks) c. Comment on the results of part a&b for the quarter 1,2 and 3 . You are required to reconcile the difference. (10 marks) End of the Assignment The following information is available for quarters 1 to 4 for Solo Limited: The company produces only one product. Normal quarter activity is 500 units and production and sales for the four quarters are as follows. There were no opening stocks at the start of quarter 1 , and the actual fixed manufacturing costs incurred was $60,000 per quarter. It is also noted that the equation of selling and administrative expenses is $8,300+4% of sales per quarter. Allocation based for annual fixed manufacturing costs is on 2,000 units. Required: a. Construct an income statement under absorption costing method for quarters 1 to 4 . (49 marks) b. Construct an income statement under marginal costing method for quarters 1 to 4 . (41 marks) c. Comment on the results of part a&b for the quarter 1,2 and 3 . You are required to reconcile the difference. (10 marks) End of the Assignment