During August 2015, a company budgeted to produce 5,000 units of Product K. Actual production for the month was 4,800 units. At the beginning of the month the company had in store 500 units of the product. During the month the company sold one unit of the product for $1,200 and there were 400 units of the product at the end of August 2015. Fixed production, administrative and distribution expenses were $1,000,000; $650,000 and $750,000 respectively. The following additional information was made available from the company's records:

Cost per unit

Details	$
Direct materials	200
Direct labour	150
Variable production overheads	100
Fixed production overhead	200
	650

Required:

1. Determine the number of units of Product K sold by the company during August 2015.
2. What was the full cost per unit of production?
3. If the company adopted marginal costing techniques what would be the amount of profit/loss reported for August 2015?
4. Use the absorption costing method to show the comparison in the profit/loss obtained in part (c).
5. Show a reconciliation of the profit figures obtained above.
6. State two reasons why you would prefer to adopt the use of absorption costing over marginal costing.