Under or Over Absorption calculation

$

Absorb overheads (Actual activity OAR)***

Actual overheds (***)

Over or -Under Absorb***

Profit reconciliation between Absorption & Marginal costing

$

Profit under MARGINAL costing ***

(Closing inventory - opening inventory) OAR per unit ***

Profit under ABSORPTION costing ***

Income Statement (ABSORPTION Costing)

$$

SalesSales unit selling price***

COS:

Opening inventoryOp.Unit unit value****

ProductionPro.Unit unit value***

Closing inentoryClo.Unit unit value(***)

(***)

Over absorb OVH***

under absorb OVH(***)

Gross profit***

Non-production variable OVH:

selling (***)

Distribution(***)

Marketing (***)

Non-production Fixed OVH:

Selling(***)

Marketing (***)

Administration(***)

Distribution(***)

Net profit***

Inventory value = Direct material cost + Direct labour cost + Direct expense + variable production OVH + Fixed production OVH

Income Statement (MARGINAL Costing)

$$

SalesSales unit selling price***

COS:

Opening inventoryOp.Unit unit value***

ProductionPro.Unit unit value***

Closing inentoryClo.Unit unit value(***)

(***)

Non-production variable OVH:

selling (***)

Distribution(***)

Marketing (***)

(***)

Contribution***

Fixed production OVH:(***)

Non-production Fixed OVH:

Selling(***)

Marketing (***)

Administration(***)

Distribution(***)

Net profit***

Inventory value = Direct materials + Direct labour + Direct expense + variable production OVH