Absorption and Marginal Costing Exercise

Exercise - Marginal Costing

Nadhyra Enterprise produces a head scarf called Tudungku which has a selling price of RM48 per unit. The cost of producing the product for each quarter is as below;

	RM
Direct material - Cloth A                       - Cloth B	7 4
Direct labour	6
Direct expenses	3
Fixed production overhead	30,000
Variable selling and administration overheads	2
Fixed selling and administration overheads	18,000

Actual production for the period is 30,000 scarves and she managed to sell about 28,000 of them.

Prepare the income statement under the variable costing and absorption costing system for the four periods ending December 2018.