(a) Calculate unit product cost under absorption costing system for year 2018 and 2019.(5 Marks)(b) Prepare the 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)

Styles Comel San Bhd (CSB) produces and sells a single product, a wooden hand loom for weaving small items such as scarves. Selected cost and operating data related to the product for two years are given below: Selling price per unit Manufacturing costs RM45 Variable cost per unit produced: Direct materials Direct labour RM9 Variable overhead RM5 Fixed cost per year RM4 Selling and administrative costs: RM135.000 Variable cost per unit sold RM3 Fixed cost per year RM65.000 Year 2018 Year 2019 Units in beginning inventory 0 3,000 Units produced during the year 15,000 9,000 Units sold during the year 12.000 12,000 Units in ending inventory 3.000 0 Additional information: 1 . Net operating income is the same for year 2018 and 2019 under variable costing system, which is RM88,000