QUESTION 2 Haitek Bhd manufactures and sells home-freezer and uses standard costing. Actual data relating to March, April and May 2021 are as follows:

Other related actual data : Manufacturing cost per unit produced ...... RM550 Marketing cost per unit sold .......... RM200 Fixed Manufacturing costs per month ... RM320,000 Fixed Operating & marketing costs per month . RM95,000 Selling price per unit...... RM1,700

The budgeted level of production used to calculate the predetermined fixed manufacturing cost per unit is 3,000 units. Any under/over applied fixed manufacturing cost due to change in production volume is charged to the cost of goods sold of the month it occurs. Assume there is no other variances related to fixed manufacturing.

REQUIRED: (a) Prepare income statements for Haitek in March, April and May 2021 under (i) variable costing (ii) absorption costing (b) Explain the difference in operating

Month Sales March April May Beginning Production Inventory 0 3,000 600 2,600 600 3,300 2,400 2,600 3,450