Answer Happy

DDL Ltd manufactures and sells a single product. Cost and revenue details of the product are as follows: Per Unit Rs Selling Price 35 Variable cost of production 7 Per Month Fixed production Overhead 6500 3400 Fixed Selling and administration Overhead It is DDL policy to maintain a constant production output at the normal capacity of 1,000 unit per month, despite fluctuations in monthly sales levels. Sales achieved for the month of Sept to Dec were as follows: Units September 500 October 400 November 1,200 December 1,900 You are required to prepare profit and loss statement for the month September to December using 1. Absorption costing 2. Marginal costing (15 marks)