The actual data are as follows

• Production 300,000 units
• Sales 250,000 units
• Fixed Overhead $2,250,000
• Fixed Selling $250,000

The unit cost for each item is listed below

• Direct material $37.50
• Direct labour $25.00
• Direct expenses $12.50
• Variable overheads $11
• Variable selling $14

One cheesecake sold for $250

Note: At the beginning of the period the entity had 30,000 units of cheesecake

Required

How do I calculate income statement using marginal costing

How do I calculate income statement using absorption costing

How to Reconcile profits between marginal costing and absorption costing

Explain the terms normal loss and abnormal loss and abnormal gain