Prepare profit statement for the year under a. Marginal costing b. Absorption costing

It's under cost accounting

Example 3 Alaala Lid is a company that produces fruit juice which is bottled and sold in crates. The nomal annual level of production on which the fixed production overhead absorption is based is 120,000 crates Ne Cepenth Data for the just ended financial year of 31 December 2018 is as follows: Productien Sales 145,000 crates Selling price 112.000 crates GHS2,000 per crate Costs Direct material 600 Direct labour 520 Variable overhead 2,50 Fixed production overhead 1,820,000 Variable selling and distribution cost 10% of sales revenue Fixed selling and distribution cost GES234,000 Assume no opening inventories Required: and 31 December, 2018 based on