Rihanna is manufacturing 3 types of furniture. Relevant costing method can be used for pricing the furniture. Fixed cost or sunk cost is need to be ignored as they dont play any role for decision making.

Particular	Type A	Type B	Type C
Material	50kg	70kg	90kg
Price of material per kg 20(price kg)	1000	1400	1800
Labour hour	24	30	40
Rate for labour per hour 25(labour hourrate per hour)	600	1500	1000
Machine overhead absorbed on the basis of direct labour hour	1080 (4524)	1500 (3050)	1600 (4040)
Fixed overhead	0	0	0
Relevant cost per piece	2680	4400	4400
Demand for product	200	400	120

As per relevant costing method price should be 2680 for furniture A,4400 for furniture B and C.

Required:

a. Having made the choice of pricing method in (a) above, calculate the selling price and show the statement of profit and loss for the month of August (12 Marks).