Bechy manufactures a single product and has prepared the following data for the year ended

June 30, 2019 and June 30, 2020.

Selling price per unit $95

Direct materials per unit $25

Direct labour (30 minutes per unit @ $10 per hour) ?

Variable production overhead $19 per direct labour hour

Sales commission per unit $2

Fixed production overhead $17,500 per annum

Fixed administrative cost $9,000 per annum

Normal activity level 700

Expected production and sales

	Year ended June 30 2019	Year ended June 30 2020
Production (units)	600	820
Sales (units)	520	850

Question 1

1. Compute the production cost per unit under marginal costing and absorption costing
2. Prepare income statements for the years ended June 30, 2019 and June 30 2020 using marginal costing
3. Prepare income statements for the years ended June 30, 2019 and June 30, 2020using absorption costing.
4. Prepare a statement to reconcile the difference in profit for BOTH years