IVANA Ltd commenced business on 1st January 2024 making one product only, which sells for 160 per item. The production and sales data for each of the first three months of 2024 were as follows: Sales in units Production in units January February March 2,400 2,500 3,800 2,700 2,400 4,000 Actual/budget information for each month was as follows: Direct materials Direct labour Variable production overheads Sales commission Fixed production overheads Fixed selling overheads 2 kilograms at 5 per kilogram 3 hours at 10 per hour 50% of direct labour 10% of sales value 10,000 35,000 There was no opening inventory at the start of January. Fixed production overheads are budgeted at 120,000 per annum and are absorbed into products based on a budgeted normal output of 30,000 units per annum REQUIRED: i. im Determine the cost of the product using Full Costing Technique and Marginal costing techniques. ii. Prepare a profit statement for each of the three months using Full costing principles. 111. Prepare a profit statement for each of the three months using Marginal costing iv. principles. Present a reconciliation of the profit or loss figures given in your answer to (ii) and (iii) together with an explanation of the reason for the difference. (d) The Managing Director of Miss Ivana Ltd stated at a recent board meeting that "the company should consider using marginal costing principles for the preparation of financial statements as this would provide better information for shareholders. Discuss the above statement.