Prepare the budgeted Income Statement of Voltex Limited for the year ended 30 June 2018 using the:

2.1 Variable costing method

2.2 Absorption costing method. INFORMATION The following information was extracted from the budgeted figures provided by Voltex Limited, a manufacturer of golf carts, for the year ended 30 June 2018. Inventory at the beginning of the year (units) 0 Production for the year (units) 500 Sales for the year (units) 450

Selling price per unit 3 000 Variable manufacturing costs per unit: Direct materials 700 Direct labour 300 Overheads 170 Variable selling and administrative costs per unit sold 130 Fixed manufacturing costs 600 000 Fixed selling and administrative costs 200 000

ADDITIONAL INFORMATION The company uses the first-in-first-out method for the valuation of inventories.