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Question 1 The Maju Company produces a baby product called CutieOmel which has a production cost: Variable cost RM5 per unit Selling price RM13 per
Question 1
The Maju Company produces a baby product called CutieOmel which has a production cost:
Variable cost | RM5 per unit |
Selling price | RM13 per unit |
Opening inventories in Period - 1 | - |
Budgeted and actual fixed production overheads | RM66,000 |
Normal activity level of 30,000 unit for each period. Actual fixed administration, selling and distribution overheads amounted to RM15,000 for period- 1 and 2, while period- 3 amounted RM13,500. The following information relates to CutieOmel for three periods.
Period | Production | Sales |
1 | 30,000 | 17,000 |
2 | 28,000 | 31,000 |
3 | 31,000 | 19,000 |
Required: Prepare the statement of profit and loss under the absorption costing system for the three periods.
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