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1. Enusah Motors Limited assembles and sells motor vehicles. It uses an actual costing system, in which unit costs are calculated on a monthly

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1. Enusah Motors Limited assembles and sells motor vehicles. It uses an actual costing system, in which unit costs are calculated on a monthly basis. The selling price per motor vehicle is 44,000. Data relating to January, February and March of 2020 are: January February March Unit data: Production 1000 1000 900 (units) Sales (units) 900 1040 940 100 60 20 Variable-cost data: Manufacturing 16,000 16,000 $16,000 costs per unit produced Selling and 8,000 8,000 8,000 Admin costs per unit sold Fixed-cost data Manufacturing 2,400,000 2,400,000 $2,400,000 costs Selling and 1,600,000 1,600,000 1,600,000 Admin costs Required: i. Compute the product cost per unit under both variable and absorption costing methods ii. Present income statements for Enusah Motors in January, February and March of 2020 under a. Variable costing b. Absorption costing. iii. Reconcile and explain the differences in operating profits under both costing methods

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