Solo Limited makes and sells a single product. The following data relate to periods 1 to 4

Normal activity is 500 units and production and sales for the four periods are as follows:

There were no opening stocks at the start of period 1.
Required:
(a) Prepare operating statements for EACH of the periods 1 to 4, based on marginal costing principles.
(b) Prepare operating statements for EACH of the periods 1 to 4, based on absorption costing
principles.
(c) Comment briefly on the results obtained in each period AND in total by the two systems.

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Variable cost per unit Selling price per unit Fixed costs per period 30 6000 Period Perod Period Period 1 unts 2 units 3 units 4 units Sales Production 500 500 400 500 550 450 450 500