Using  the  information below, list profit statements  for June and July using  (a) margin
costing and (b) absorption costing.

A company produces and sells 1 product only which sells for Rs. 50 per unit. There were  no stocks at the end of May and other information is as follows:
         
                                                                                       Rs.
  Standard cost per unit 
  Direct material                                                                 18
  Direct wages                                                                     4
  Variable production overhead                                              3
        
Budgeted and actual fixed costs per month  
    Fixed production overhead                                              99,000
    Fixed selling expenses                                                   14,000
    Fixed administration expenses                                       26,000
    Variable selling expenses                                        10% of sales value
 
Normal capacity is 11,000 units per month. 
The number of units produced and sold was: 
 
 
                                                         June       July
                                                        Units       units 
Sales                                              12,800      11,000
Production                                       14,000      10,200