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Solve this proper or ASAP . we have 7 hours Direct labour Variable FOH Total MARGINAL & ABSORPTION COSTING 0. No. 01 Normal capacity of

Solve this proper or ASAP . we have 7 hours

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Direct labour Variable FOH Total MARGINAL & ABSORPTION COSTING 0. No. 01 Normal capacity of a plant of Shadman Industry is 36,000 units per month or 432,000 units a year, and its variable costs per unit are: Rs. Direct material 5.40 4.05 1.35 10.80 Fixed overheads are Rs.540,000 per year or Rs.2.25 per unit at normal capacity. Company is using units of product' as basis for applying overheads. Fixed marketing and administrative expenses are Rs.108,000 per year and variable marketing expenses are Rs.6,120, Rs.6,480, Rs.7,200 and Rs.5,400 for the first second third and fourth month respectively. Actual and applied variable overheads are the same. Likewise no material or labour variance exists. There is no work in process. Standard costs are assigned to finished goods only. Sale price per unit is Rs.10 and actual production, sale and finished goods inventories in units are: MONTHS First Second Third Fourth Units in beginning inventory 5,400 1,800 Units produced 31,500 37,800 34,200 36,000 Units sold 31,500 32,400 37,800 29,700 Units in ending inventory 5,400 1,800 8,100 Required: (0) Income statement using Absorption Costing, and (ii) Income statement using Marginal Costing methods. Direct labour Variable FOH Total MARGINAL & ABSORPTION COSTING 0. No. 01 Normal capacity of a plant of Shadman Industry is 36,000 units per month or 432,000 units a year, and its variable costs per unit are: Rs. Direct material 5.40 4.05 1.35 10.80 Fixed overheads are Rs.540,000 per year or Rs.2.25 per unit at normal capacity. Company is using units of product' as basis for applying overheads. Fixed marketing and administrative expenses are Rs.108,000 per year and variable marketing expenses are Rs.6,120, Rs.6,480, Rs.7,200 and Rs.5,400 for the first second third and fourth month respectively. Actual and applied variable overheads are the same. Likewise no material or labour variance exists. There is no work in process. Standard costs are assigned to finished goods only. Sale price per unit is Rs.10 and actual production, sale and finished goods inventories in units are: MONTHS First Second Third Fourth Units in beginning inventory 5,400 1,800 Units produced 31,500 37,800 34,200 36,000 Units sold 31,500 32,400 37,800 29,700 Units in ending inventory 5,400 1,800 8,100 Required: (0) Income statement using Absorption Costing, and (ii) Income statement using Marginal Costing methods

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