Silver Limited (SL) produces and markets a single product. Following budgeted in ...

Silver Limited (SL) produces and markets a single product. Following budgeted information is available from SL’s records for the month of March 20X4: Fixed production overheads, at a normal output level of 105,000 units per month, are estimated at Rs. 2,100,000. The estimated selling price is Rs. 180 per unit. Assuming there are no opening stocks, Required Prepare SL’s budgeted profit and loss statement for the month of March 20X4 using absorption costing Question 4 Part B A company uses absorption costing. In the financial period that has just ended, opening inventory was Rs.76,000 and closing inventory was Rs.49,000. The reported profit for the year was Rs.183,000. If the company had used marginal costing, opening inventory would have been Rs.40,000 and closing inventory would have been Rs.28,000. Required What would have been the profit for the year if marginal costing had been used? Question 4 Part C Entity Tyranny manufactures a single product, and uses absorption costing. The following data relates to the performance of the entity during October. Units of inventory are valued at Rs.9 each, consisting of a variable cost (all direct costs) of Rs.3 and a fixed overhead cost of Rs.6. All overhead costs are fixed costs. Required: A. Calculate the actual production units for October B. Calculate the • actual production overheads • Applied overheads for October C. Calculate the marginal profit with help of absorption profit by making profit reconciliation statement as discussed during the class lecture and also state that which costing method will result in higher profit.