Prepare profit statements for each of the six-monthly periods, using the following methods of costing.(a) Marginal costing(b) Absorption costing

RH makes and sells one product, which has the following standard production cost. GHe Direct Labour 3 hours at GHe6 per hour 18 Direct Materials 4 kilograms at GHe7 per kg 28 Production Overhead Variable 3 Fixed 20 Standard production cost per unit 69 Normal output is 16,000 units per annum. Variable selling, distribution and administration costs are 20 percent of sales value. Fixed selling, distribution and administration costs are GHe180,000 per annum. There are no units in finished goods inventory at 1 October 2017. The fixed overhead expenditure is spread evenly throughout the year. The selling price per unit is GHe140. Production and sales budgets are as follows: Six months ending Six Months Ending 31 March 2018 30 September, 2018 Production 8,500 7,000 Sales 7,000 8,000 Required: Prepare profit statements for each of the six-monthly periods, using the following methods of costing