Company A produces a single product with the following budget:
Selling price $10 per unit
Direct materials $3 per unit
Direct wages $2 per unit
Variable production overhead $1 per unit Fixed production overheads $10,000 per month.
Actual Production 6000 units
Sales 4800 units
Closing inventory is 1200 units.
The fixed production overhead absorption rate is based on a production level of 5,000 units per month and assume costs were as budgeted.
Required: Prepare profit statements for the month using both absorption costing and marginal costing principles.​