(a) Calculate unit product cost under absorption costing system for year 2018 and 2019.

(5 Marks)

(b) Prepare an income statement using absorption costing system for the year ended 31 December 2018 and 2019.

(8 Marks)

(c) Reconcile the variable costing and absorption costing net operating incomes for year 2018 and 2019.

(5 Marks)

(d) Explain how managers manipulate income with the use of absorption costing system.

(2 Marks)