Donald Simpson Ltd produces a single product and has a budgeted capacity of 6,000 units monthly. At the start of March 2019, there were 1,250 units of the product in stock. During the month, the company sold one unit of the product for $1,200. Sales for the month amounted to 8,500 units and there were 600 units of the product in store at the end of the month. Administrative and selling overheads for the month were $700,000 and $600,000 respectively. The following information relating to the product was also extracted from the accounting records:

Cost per unit

Details	$
Direct materials	150
Direct labour	170
Variable overheads	50
	370
Fixed production overheads	120
Total	490

Required:

(a) Determine the amount of production for March 2019. (2 marks)

(b) Prepare profit statement using Marginal Costing techniques for March 2019. (7 marks)

(c) Prepare profit statement using Absorption Costing techniques for March 2019. (8 marks)

(d) Reconcile the profit results obtained using both product costing methods. (3 marks)