Peter co manufactures a single product, Bonsa bitters, data for the month of April 2021 are as follows:

Required:

Prepare income statements for the month, using

(a) Marginal costing

(b) Absorption costing

Opening inventory Nil Production in units 280,000 Sales 240,000 Per unit $ Selling price 180 Direct materials 40 Direct labour 16 Variable overheads 10 Fixed overhead absorption rate $1.25 per unit of output