Question:
X Ltd. commenced production on 1 January 2010. During the first three months ending on 31 March 2010, the company produced 10,000 units, selling 8,000 units out of these at the rate of Rs. 10 per unit. The total costs were as follows:
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Materials
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30,000
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Labour
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40,000
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Variable production overheads:
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15,000
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Fixed production overheads
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10,000
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Administration & selling expenses
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7,500
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Ascertain the profit under absorption costing and marginal-costing systems.