j39 March P.15.5 for several months the top management of a company has been puzzled by fluctuations in the income as reported by the accountant. The results for February, March and April as reported are as follows: Particulars February March April Sales 18.00,000 18,00,000 79,00,000 Less: Manufacturing cost of sales 16,60,000 13,60,000 4,30,000 Selling and administrative expenses 4.40,000 4,40,000 4.40.000 Total 21.00.000 18,00.000 8.70,000 Net Income (loss) (3.00.000) 30.000 There has been no change in sales price during the three month period. During the months of Febru- ary and March, the plant sold 3,00,00,000 units. In April, it sold 1,50,00,000 units. The production for the three months was as follows: Particulars February April Opening inventory (units) 3,01,00,000 1,00.000 1,00,000 Production during the month 3.00.00.000 6,00,00.000 3,01,00,000 3,01,00.000 6,01,00,000 Units sold 3,00,00,000 3,00,00.000 1,50,00,000 Closing inventory 1,00,000 1,00,000 4,51,00,000 The standard cost for the type of the units sold discloses the following information: Cost per 1,000 units Direct material and labour 30 Overheads: Variable 2 Fixed 10 42 The fixed manufacturing costs budgeted for each of the months were 34,00,000. There were no spending or efficiency variances during the three months. All selling and administrative expenses were of a fixed nature. You are required to prepare comparative income statements for the three months, using variable costing