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Q . No . 3 ( b ) . A company produces a single product. Normal volume of output is 1 0 , 0 0

Q. No.3(b). A company produces a single product. Normal volume of output is 10,000 units. Other data are
following:
Raw Materials
Direct Wages
Variable Manufacturing Overhead
Fixed Manufacturing Overhead Rate
Fixed Selling and Distribution Cost
The operations of the year ended December of last year was:
Opening Stock 2,000 units
Production ,9,000 units
Closing Stock ,1,000 units
Selling Price per Unit Rs.20
Rs.5 per unit
Rs.4 per unit
Rs.1 per unit
Rs.3 per unit
Rs.16,000
Required: (i) Income Statement under Absorption Costing
(ii) Income Statement under Variable Costing
(ii) Reconciled Profit between variable and absorption costing with possible reason
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