Thefollowing information is availablefor XYZ Company

Period

1

2

3

4

5

6

Unitssold(000)

150

120

180

150

140

160

Unitsproduced(000)

150

150

150

150

170

140

Budgeted activity is expected to average 150,000 units per period and there is no opening

stock for period 1.Unit selling price is Ksh 10, Unit variable cost is Ksh 6, fixed costs per period is Ksh 300,000 while nonmanufacturing overheads are 100,000 per period. Required:

Prepar a profit and loss statement based on variable and absorption costing (10 marks)