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Questions on Marginal Costing Techniques
Your name Nig. Ltd presents you with the following data about its operations for the quarter ended 31/12/2015
- Selling price per liter N50
- Direct material per liter N20
- Direct labor per liter N15
- Variable production overhead per liter N5
- Fixed production overhead cost N600,000
- Other fixed costs N100,000
- Sales commission per liter N3
- Quantity sold 180,000 liters
- Closing stock 80,000
You are required to prepare an income statement for the quarter ended 31/12/2015 using:
- Absorption Costing Technique.
- Marginal Costing Technique.
- Show reconciliation of profit between the two methods.
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