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Product Omega A firm manufactures and sells a single product - Product Omega. Selling Price per unit Direct Costs per unit 30 8 Details of
Product Omega A firm manufactures and sells a single product - Product Omega. Selling Price per unit Direct Costs per unit 30 8 Details of the month of September and October are as follows: Production of Omega Sales of Omega Fixed production overheads September 750 units 600 units 4,500 October 1,000 units 1,150 units 4,500 The normal level of activity for both sales and production is 900 units per month. Fixed production overheads are budgeted as 4,500 per month and are absorbed on a unit basis. Required: a. Prepare for September and October profit statements showing stock valuations, based on the following principles. i. Absorption costing ii. Marginal costing b. Briefly comment on your results
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