Booti Booti Bottling Works Manufactures Glass Bottles

Essay

Booti Booti Bottling Works manufactures glass bottles.January and February operations were identical in every way except for the planned production.
January had a production denominator of 35 000 units.
February had a production denominator of 36 000 units.
Fixed manufacturing costs totalled $126 000.
Sales for both months totalled 45 000 units with variable manufacturing costs of $4 per unit.Selling and administrative costs were $0.40 per unit variable and $60 000 fixed.The selling price was $10 per unit.
Required:
Compute the operating profit for both months using absorption costing.
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