Shaheen Ltd. manufactures around 10,000 machines in a month. The break-up of unit cost is as under:

Rs.

Direct Material 750

Direct Labour 300

Variable Overhead 150

Fixed Overhead 600

1,800

Selling Price of machine is Rs.2,400. Production and sales for periods 1,2 and 3 were as under:

Period 1 Period 2 Period 3

Production 10,000 8,000 11,000

Sales 8,000 9,000 12,000

Production can be increase to 11,000 units without a corresponding increase in fixed overhead.

Required:

Prepare Operating statements for the three periods assuming the company uses:

1. Absorption Costing; and

Marginal Costing also solve adjusted Cost of good sold and unadjusted under applied or over applied in absorption costing