Information The financial manager of Seiko Manufacturers provided the following budgeted information for the month ended 31 August 2020:

Estimated production -5 000 units

Estimated sales - 4 500 units

Selling price per watch - R900

Variable manufacturing costs per watch - R550

Fixed manufacturing overheads - R300 000

Marketing and administrative costs: R150 000

Fixed costs Variable costs per watch sold - R100

Required Prepare the Income Statement for the month ended 31 August 2020 using the absorption costing method.