[25] QUESTION 1 Gamma Manufacturer's statement of comprehensive income for the year is as follows: 1 120 000 630 000 462 000 168 000 Sales (28 000 units) Less: Variable costs Variable costs of goods sold Sales and administration Contribution Less: Fixed costs Manufacturing overheads Sales and administration Net Loss 490 000 500 000 300 000 200 000 (10 000) Variable costs of goods sold include material, labour and variable overheads. At the moment Gamma manufactures only one product. The following details apply to the first half of the year: Units manufactured Units sold Variable costs per unit Direct material Direct labour Variable overheads Variable sales and administrative 30 000 28 000 R 3.50 12.00 1.00 6.00 Required: a) Calculate the cost per unit according to the absorption costing method. b) Draw up a statement of comprehensive income using the absorption costing method. c) Reconcile the results according to the two methods