Cengkih Manis Sdn Bhd is involved in the Food & Beverage industry. Detail information on inventory, production and revenues are given below:
	Period 1	Period 2
Production (litres)	50,000	60,000
Sales (litres)	55,000	35,000
Opening Inventory (litres)	15,000	-
Closing Inventory (litres)	-	25,000
Below are the financial data based on the activity level between 50,000 to 60,000 litres.
	Cost/litre (RM)
Direct raw material	3.50
Direct labour	6.50
Production overheads	10.00
Total cost/litre	20.00
Selling Price	35.00
Administration overheads		RM125,000
Percentage of Fixed cost in Production overhead		55%

Required:

1. Prepare Operating Statement for Period 1 and Period 2 using Marginal Costing.
2. Prepare Operating Statement for Period 1 and Period 2 using Absorption Costing.
3. Illustrate THREE (3) differences between marginal costing and absorption costing.