Nice-Night produces and sales single product called comfort bed sheets. Each bed sheet is sold at TZS 60,000. The current production level is 240,000 bed sheets per month, although only 200,000 bed sheet are anticipated to be sold in October 2016. Unit Manufacturing costs in TZS are:

-Direct Materials5,000

-Direct Labour3,000

-Variable manufacturing overhead1,500

-Total fixed manufacturing overhead 120,000,000

-Non Manufacturing variable overheads2,000

-Non Manufacturing fixed overheads 50,000,000

Required

a)Determine the cost of closing stock under marginal and absorption costing

b)Prepare Income statement using marginal and absorption costing

c)reconciliate the difference in net profit from the two income statements