Selected data for Babar Ltd of past year of operations are presented below

Product X

Production [ in units ] 25000

Sales [ in units ] 18000

Selling price $4.00

DLHours 8000

Manufacturing cost

Raw Materials [$] 17000

Salaries of direct labour[$] 24000

Variable overhead 14000

Fixed overhead 8000

Non manufacturing cost

Variable selling 18000

Fixed selling cost 15000

Estimated fixed cost = $28000

Budgeted Machine hours = 8400

Company uses absorption cost based on machine hours

REQUIRED

1. Calculate product cost of product X using variable cost .

2. Calculate product cost of product X using absorption cost ..

3. Calculate variable cost of goods for the year

4. Find the variable-costing net income

5. Calculate cost of goods for the year using absorption method

6. Find the net income using absorption method