1. ABC is a manufacturing firm. This period ABC produced 6,000 units and sold 8,000 units. Information is presented below:

Selling price : 70 TL per unit sold

Direct material cost : 11 TL per unit produced

Direct labor cost : 7 TL per unit produced

Variable manufacturing overhead : 6 TL per unit produced

Variable selling, marketing and delivery expenses : 4 TL per unit sold

Total fixed manufacturing overhead : 54,000 TL for the period

Total fixed selling, marketing and delivery expenses : 45,000 TL for the period

Total fixed general administrative expenses : 75,000 TL for the period

a. Prepare a full-absorption costing and variable costing income statement for the period. (5 Points)

b. Which income statement is used for financial reporting? Which income statement is used for performance evaluation and why? (1 Points)