Guidelines: All answers must be typed out and workings must be showing.

QUESTION THREE The following formation was extracted from the accounting records of Tommy Ltd for the year ended 29 February 2020. The company utilises the Fist-In First-Out method of inventory valuation. Units NIL Inventory at the beginning of the year Production for the year 12 000 Sales for the year (at R720 per unit) 11 400 R 50 Direct material cost per unit Direct labour cost per unit 120 60 Variable manufacturing overhead per unit Variable selling and administrative cost per unit 20 Fixed manufacturing overhead cost 220 000 Fixed selling and administrative cost 140 000 Required: 3.1 Prepare the Statement of Income and Expenditure using the marginal / variable costing method. 3.2 Prepare the Statement of Income and Expenditure using the absorption costing method. Guidelines: All answers must be typed out and workings must be showing