The company manufactured 15000 and sold 14 000 units during november 2016, 1000 units were in opening inventory at the beginning of that month.

During December 2016, 16 000 units were manufactured and 17 000 unjts sold

required

7.1 compile separate income statements for the last month of 2016 according to

1. the absorption costing method

2. the variable costing medthod

7.2

1. reconcile the net profit obtained under 7.1 above

2. explain why variable costing may be preferable in decision making scenarios

PLEASE ANSWER THIS QUESTION IN FULL DETAIL AND SHOWING ALL CALCULATIONS FOR MY UNDERSTANDING.

Question 7 (20 Marks - 36 Minutes - Supp. Exam 2016 Plasto Ltd is a manufacturer of plastic packaging and related products. Their records of the month of December 2016, company reveal the following: Manufacturing cost per unit N$ Fixed Variable 7 11 Selling and administrative cost per unit Fixed Variable 1 Additional information: Selling price per unit Normal capacity (per month) 24 16 000 All variable costs increased by 100 cents from November to December. Page 8 of 71 Activate Windows Go to Settings to activate Windows. 1 Type here to search O *** ? 25C x x ENG 12:56 pm 26/08/2021 3