[nishii]

please show the calculation

[nishii]

what about the raw material

[nishii]

sir but the answer given for (b) is 15,000.

Variable production cost of boats 45/750 × 700 42
Fixed production costs (absorbed) 30/750 × 700 28
––––
Production costs of 700 boats 70
Closing inventory of 100 boats (10)
––––
Production cost of 600 sold 60
Under?absorbed overhead 30 – 28 2
Variable selling costs 5/500 × 600 6
Fixed selling costs 25
––––
93
Profit 15
––––
Sales revenue 90/500 × 600 108

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