5,000 units Inventory. 1 Jan 2020 Inventory. 31 Dec 2020 Production 8,000 Sales 10,000 units Direct material Direct labor $12.00 per unit S15.00 per unit $18.00 per unit Variable Overhead (55 is related to selling expense) Fixed Cost (80% related to production) 200.000 per annum a b. The product sells for $150.00 per unit Required: Prepare a profit and loss statement for the year ended 31 December 2020 using variable costing system (6 marks) Prepare a profit and loss statement for the year ended 31 December 2020 using absorption costing system (7 marks) Prepare the statement of reconciliation of net profit between absorption costing and variable costing (3 marks) Briefly explain on the reason for using absorption costing method as a choice of reporting 14 marks c. d 140