Sabbat Limited manufactures beds for students in a private hostel. The

following information relates to the activities of the company from January to

June $2020.$

Elements Amount $($RM$)$

Rent and rates $5,000$

Indirect wages $1,500$

Depreciation of machinery $10,000$

General lighting $600$

Power $1,500$

Sundries $10,000$

A B C D E Total

Floor space in square feet $2,0002,5003,0002,00050010,000$

Light points $10152010560$

Direct wages $($RM$)3,0002,0003,0001,50050010,000$

Horse Power of machines $60305010-150$

Production departments Service Departments

Element Basis of Apportionment Total

A B C D E

Rent and Rates

Indirect Wages

Depreciation

General lighting

Power

Sundries

Direct wages

Total

Production departments $($RM$)$ Service department $($RM$)$

RM

Selling Price per unit $2,000$

Variable cost per unit $800$

Fixed monthly manufacturing cost $300,000$

Monthly Non manufacturing cost $100,000$

There were no opening stocks in January

Normal production level in Sabbat Limited is expected to be $1500$ beds per

month and

production and sales for the period to June $2020$ is presented below:

June

Required:

Prepare an income statement for Sabbat Limited for each month based on the

marginal Costing System

$[45$ marks$]$

January February March April May June

Unit Solds $150012001800150014001600$

Unit Produced $150015001500150017001400$