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Moona Inc. produces Mobile phones. Information of the company's operations last year appears below: Fixed cost: Fixed Manufacturing overhead Rs 40,000 Fixed selling & Administrative

Moona Inc. produces Mobile phones. Information of the company's operations last year appears below:

Fixed cost:

Fixed Manufacturing overhead

Rs 40,000

Fixed selling & Administrative

Rs 60,000

Selling Price per unit

Rs 100

Variable cost per unit:

Direct Materials

Rs 30

Direct labor

Rs 10

Variable Manufacturing overhead

Rs 5

Variable selling & Administrative

Rs 2

Units In beginning Inventory

0

Units Produced

2000

Units sold

1900

Required: a. Compute the unit product cost under both absorption and variable costing.(2 Marks) b. Prepare an income statement for the year using absorption costing.( 3 Marks) c. Prepare a contribution format income statement for the year using variable costing.(3 Marks) d.Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year. (2 Marks)

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