The following information applies to questions A12 to A15.

Selling price per unit is 30

Variable cost per unit is 15

Fixed costs of the period are 2,400

Normal level of production activity is 240 units

	Period 1 units	Period 2 units
Produced	280	240
Sold	250	250
Held in stock at end of period	30	20

A12 Using absorption costing, the value of closing stock at the end of period 1 is

1. Nil
2. 450
3. 500
4. 750

A13 Using marginal costing, the value of closing stock at the end of period 1 is

1. Nil
2. 450
3. 500
4. 750

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A14 Using absorption costing the profit of period 2 is

1. 1,250
2. 1,350
3. 3,600
4. 7,500

A15 Using marginal costing the profit of period 2 is

1. 1,250
2. 1,350
3. 3,600
4. 7,500