Company A manufactures and sells a single product. Budgeted costs for Quarters $1$ and $2$ are:

Direct Materials: $$5\mathrm{.}60$ per unit

Direct Labor: $$4\mathrm{.}20$ per unit

Variable Production Overhead: $$0\mathrm{.}70$ per unit

Variable Administration Overhead: $$0\mathrm{.}50$ per unit

Fixed Production Overhead: $$312,000$ for the year

Fixed Administration Overhead: $$168,000$ for the year

Fixed Production Overheads are based on an annual budgeted production of $48,000$ units.

Fixed Selling and Distributions cost: $$6,500$ per month.

Variable Selling and Distributions cost: $15\%$ of sales revenue.

$1,400$ units of the product were in finished goods inventory at the beginning of quarter

The following information was also provided:

Sales:

Quarter $1$: $$11,800$

Quarter $2$: $$12,000$

Production

Quarter $1$: $$12,300$

Quarter $2$: $$11,500$

The average selling price is $$24$ per unit. Actual costs in the period were as budgeted.

Required:

Prepare Income Statements for each quarter using:

A$)$ Marginal costing,

B$)$ Absorption costing.

Prepare a reconciliation statement of the profit or loss figures obtained in your answer for above.