year 1

sales. ( unit ) 18,000

production. ( unit ) 19,000

year 2

sales ( unit ) 19,500

production ( unit ) 20,500

Q3::A) PLK plc sets up as a manufacturing business in Dundee. The selling price of its single product is 30 per unit. Direct material costs are 6 per unit and the direct labour costs are 10 per unit. Annual fixed costs are 80,000 for a normal production level of 20,000 units. The following information relates to production and sales for Year 1 and Year 2. (MARKS 7) ARRA WI-10 10 Ya You are required to prepare statements showing the valuation of stock and the profit figures for Year 1 and Year 2 using: Q3::A) PLK plc sets up as a manufacturing business in Dundee. The selling price of its single product is 30 per unit. Direct material costs are 6 per unit and the direct labour costs are 10 per unit. Annual fixed costs are 80,000 for a normal production level of 20,000 units. The following information relates to production and sales for Year 1 and Year 2. (MARKS 7) ELLER You are required to prepare statements showing the valuation of stock and the profit figures for Year 1 and Year 2 using: (a) Absorption costing (b) Variable costing