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Bukalo Mechanical Ltd is a company that manufactures and sells diesel-powered generators. The company manufactures various models, and their client base varies from families to large corporates. The company has shown outstanding results over the past few years. According to the managing director, Mr Usain Volt, this can be attributed to the careful monitoring of production from financial perspective. The company predicted the load shedding episode of 2016, and in anticipation thereof, introduced a cheap generator called the Compact. The product was specifically aimed at private clients and performed extremely well. The company planned to sell 3 000 compact generators at N$ 850 each The following information relates to the budgeted production of December 2017; Material Labour Salaries for Factory Supervisors Depreciation of machinery Rental of factory premises Electricity Opening stock 500 units Units produced 2500 937 500 275 000 240 000 50 000 70 000 200 000 Fixed Variable The company offers a commission of N$ 34 for each unit sold, there are fixed selling and administration costs of N$ 120 000. MARKS 9.5 REQUIRED 9.1 Prepare a statement of comprehensive income using the marginal costing approach 9.2 Prepare a statement of comprehensive income using the absorption costing approach 9.3 Reconcile the profit of the absorption costing and marginal costing method TOTAL MARKS FOR QUESTION 9 6.5 4 20 Question 10 Supp 2017 (15 Marks, 27 Minutes) Page 10 of 71 PREVIOUS NEXT

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