INFORMATION Costa Enterprises commenced operations on 02 January 2022, and produces a single product that sells for R72 per unit. During 2022, 300 000 units of the product were manufactured of which 240 000 units were sold. There was no work-in-process inventory at the end of the year. Manufacturing costs and marketing and administrative costs for 2022 were as follows: Costs/Expenses Fixed Variable Direct materials - R12 per unit produced Direct labour - R8 per unit produced Manufacturing overheads cost R1 200 000 R4 per unit produced Marketing and administrative cost R600 000 R2 per unit sold.

REQUIRED Use the information given below to prepare the Income Statement of Costa Enterprises for the year ended 31 December 2022 using the absorption costing method. (10 marks)