Basics Limited's production and sales details for December 2010 was as follows:

Production (Units)

Sales (Units)

12,000

10,000

GH/unit

Sales

Material

30

10

Labour

Variable production overhead

Variable selling overhead

Fixed costs for the month are as follows: GH$

Fixed production cost36,000

Fixed selling and distribution cost26,500

Required:

i.Make a profit statement for the month using the marginal costing approach?

(II) Using the profit in

derive the absorption costing profit.