From the following cost, production and sales data of Decors Motor Ltd., prepare comparative income statement for three years under (i) absorption costing method, and (ii) marginal costing method. Indicate the unit cost for each year under each method. Also evaluate the closing stock. The company produces a single article for sale.
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Particulars
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Year
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|
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2008
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2009
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2010
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|
Selling Price per unit
|
20
|
20
|
20
|
|
Variable manufacturing cost per unit
|
10
|
10
|
10
|
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Total fixed manufacturing cost
|
5000
|
5000
|
5000
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Opening Stock (Units)
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-
|
-
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500
|
|
Units Produced
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1000
|
1500
|
2000
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Units Sold
|
1000
|
1000
|
1500
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Closing Stock (Units)
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-
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500
|
1000
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