ABC Limited manufactures and sells a single product branded "Zed". The following data has been extracted from the budgets and standard costs relating to products "Zed": Sh. per unit Selling price 450 Direct materials cost 100 Direct wages cost 40 Variable overhead cost 25 Fixed production overhead costs are budgeted at Sh. 4,000,000 per annum. Normal production levels are expected to be 320,000 units per annum. Budgeted selling and distribution costs are as follows: Variable cost Sh. 15 per unit sold Fixed cost Sh. 800,000 per annum Budgeted administration costs are Sh. 1,200,000 per annum. The following pattern of sales and production was expected during the first six months of the year: January - March April - June Sales (units) 60,000 90,000 Production (units) 70,000 100.000 There was no opening stock on 1 January. Required: a) Profit statements for each of the two quarters in a columnar format using: i. Marginal costing. ii. Absorption costing. b) Reconcile the profits reported by the two methods in part (a) above