REQUIRED Use the information given below to prepare the Income statement of Kendall Manufacturers for October 2023 using the following methods:

2.1 Marginal costing (10 marks)

2.2 Absorption costing. (10 marks)

INFORMATION The following information was provided by Kendall Manufacturers for the only product produced during October 2023:

Opening inventory Nil

Number of units manufactured 5 000

Sales R4 200 000

Selling price per unit R1 000

Variable manufacturing costs per unit R425

Fixed manufacturing overhead cost R325 000

Variable selling cost per unit R80

Fixed selling cost R175 000

Fixed administrative cost R200 000

2.1

MARGINAL COSTING METHOD

KENDALL MANUFACTURERS
INCOME STATEMENT FOR THE MONTH ENDED 31 OCTOBER 2023
	Workings	R
Sales
Less: Variable cost
Marginal income
Net profit

(10 marks)

2.2

ABSORPTION COSTING METHOD

KENDALL MANUFACTURERS
INCOME STATEMENT FOR THE MONTH ENDED 31 OCTOBER 2023
	Workings (if any)	R
Sales
Less: Manufacturing cost of sales
Gross profit
Less: Other costs
Net profit

(10 marks)