Madinare is planning to produce a new product called GTY which will be used in the construction industry. This selling price per unit of this product will be P$340\mathrm{.}00.$

The following are the unit costs of GTY:

Direct materials:

$1$ container P$10\mathrm{.}00$; Chemical PN $3$ kgs at P$10\mathrm{.}00$ per kg; Chemical QS $4$ kgs at P$17\mathrm{.}50$ per kg

Direct labour: $15$ minutes at P$80$ per hour

Variable factory overhead: Absorbed at P$140$ per direct labour hour

Fixed factory overhead: P$30,400\mathrm{.}00$ for the half year to June $2024.$ To be absorbed at a rate per unit.

Sales commission per each unit sold P$10\mathrm{.}00$

Fixed administrative costs will be P$25,000\mathrm{.}00$ per annum.

The expected production and sales for the $6$ months ended $30$ June $2024$ will be:

Production $380$ Units

Sales $365$ units, meaning $15$ units of GTY will remain as closing inventory

i$)$ Using marginal costing, showing all your workings, prepare a detailed income statement $($Statement of profit or loss account$)$ for the half year to $30$ June $2024(10)$

ii$)$ Briefly explain any two weaknesses of using marginal costing