A company manufactures and sells a single product. In two consecutive months the following levels of production andsales (in units) occurred:
| Month 1 | Month 2 | | Sales | 3,800 | 4,400 | | Production | 3,900 | 4,200 |
The opening inventory for Month 1 was 400 units. Profits or losses have been calculated for each month using bothabsorption and marginal costingprinciples.
Which of the following combination of profits and losses for the two months is consistent with the above data?
| Absorption costingprofit/(loss) | Marginal costing profit/(loss) | | Month 1 | Month 2 | Month 1 | Month 2 | | $ | $ | $ | $ | | A. | 200 | 4,400 | (400) | 3,200 | | B. | (400) | 4,400 | 200 | 3,200 | | C. | 200 | 3,200 | (400) | 4,400 | | D. | (400) | 3,200 | 200 | 4,400 |
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