Question
Question 1 Maxxa Limited manufactures one product, the Maxx. For the month of January 2019, the following information is available: Number of units manufactured 4,000
Question 1
Maxxa Limited manufactures one product, the Maxx. For the month of January 2019, the following information is available:
Number of units manufactured | 4,000 |
Number of units sold | 3,000 |
Selling price | RM8 per unit |
Direct materials for month | RM5,000 |
Direct labour for month | RM9,000 |
Fixed production overheads for month | RM6,000 |
There was no finished goods inventory at the start of the month. Both direct materials and direct labour are variable costs.
Required:
You are produce Statement of Profit or Loss using marginal costing and absorption costing methods.
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