Instructions: All answers must be typed in and working must be shown.

QUESTION 2 REQUIRED Use the information provided below to answer the following questions: 2.1 Prepare the Income statement of Matrix Manufacturers for October 2020 using the: 2.1.1 Variable costing method 2.1.2 Absorption costing method. 2.2 Reconcile the profit calculated according to absorption costing (in 2.1.2) with the profit calculated according to variable costing (in 2.1.1). The following information relates to the only product manufactured by Matrix Manufacturers during October 2020: Opening inventory Nil Number of units manufactured 4 000 Number of units sold 3 500 Selling price per unit Variable manufacturing costs per unit Fixed manufacturing overhead costs Variable selling costs per unit Fixed selling costs Fixed administrative costs R500 R200 R150 000 R37.50 R75 000 R100 000 Instructions: All answers must be typed in and working must be shown