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COST ACCOUNTING

UNIT $3$: ACTIVITIES

QUESTION $1$

REQUIRED

$1\mathrm{.}1.$ Use the information provided below to prepare the Income Statement of Vivo Manulacturers for March $2023$ using the following methods:

$1\mathrm{.}1\mathrm{.}1.$ Variable costing

$1\mathrm{.}1\mathrm{.}2$ Absorption costing

$1\mathrm{.}2$ Reconcile the profit calculated according to variable costing $($in question $1\mathrm{.}1\mathrm{.}1)$ with the profit calculated according to absorption costing $($in question $1\mathrm{.}1\mathrm{.}2).$

INFORMATION

The following information relates to the only product produced by Vivo Manufacturers during March $2023$: