(i) Prepare Operating Income Statement for the month of October 2021 using Marginal Costing Approach. (9 marks)

(ii) Prepare Operating Income Statement for the month of October 2021 using Absorption Costing Approach. (10 marks)

(iii) Reconcile the difference in the profits under the two costing approaches. (3 marks)

Merry Company produces clothes. One of the company's products is KIKILULU Skirts which are sold for RM90 each. The standard cost of producing 100 units of KIKILULU skirt is shown below: RM Direct labour 500 Direct material 2,000 Variable production overhead 1,200 Fixed production overhead 1,800 TOTAL 5,500 Production and inventory data during the month of October 2021 is given below: Units Unit production 5000 Opening inventory 10,000 Closing inventory 8,000 The company's normal production is 120,000 units per annum. Fixed production overhead cost spread evenly over the year. The fixed selling and distribution cost per year is RM78,000. Variable selling and distribution cost is RM5.00 per unit