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QUESTION 1 (15 MARKS, 27 MINUTES) Namib Mills has a production capacity of 200 000 bags of maize flour per year, normal capacity usage is reckoned as 90% Standard variable production costs are N511 por bag. The fixed cost is N$360 000 per year Variable selling costs are N$3 per bag, and fixad selling costs are N$270 000 per year, the selling price per bag is N$20 In the year just ended on the 30 August 2021, production was 160 000 bags. Accordingly, sales were 150 000 bags. The closing inventory on the 30 August 2021 was 20 000 bags. The actual variable production costs for the year were NS 35 000 higher than the standard REQUIRED: MARKS 1.1 Calculate the profit for the year using absorption costing method 6.5 1.2. Calculate the profit for the year using marginal costing method 5.5 1.3 Use your answers in 1.1 and 1.2 and reconciliation profits between the two statements TOTAL MARKS FOR QUESTION 1 15 3 QUESTION 1 (15 MARKS, 27 MINUTES) Namib Mills has a production capacity of 200 000 bags of maize flour per year, normal capacity usage is reckoned as 90% Standard variable production costs are N511 por bag. The fixed cost is N$360 000 per year Variable selling costs are N$3 per bag, and fixad selling costs are N$270 000 per year, the selling price per bag is N$20 In the year just ended on the 30 August 2021, production was 160 000 bags. Accordingly, sales were 150 000 bags. The closing inventory on the 30 August 2021 was 20 000 bags. The actual variable production costs for the year were NS 35 000 higher than the standard REQUIRED: MARKS 1.1 Calculate the profit for the year using absorption costing method 6.5 1.2. Calculate the profit for the year using marginal costing method 5.5 1.3 Use your answers in 1.1 and 1.2 and reconciliation profits between the two statements TOTAL MARKS FOR QUESTION 1 15 3