Prepare the Income Statement of Bantex Manufacturers for March 2018 using each of the following methods from the information provided below:

2.1

Variable costing

(10)

2.2

Absorption costing.

(10)

INFORMATION

The following information relates to the only product produced by Bantex Manufacturers during March 2018:

Opening inventory

Nil

Number of units manufactured

3 000

Number of units sold

2 700

Selling price per unit

R300

Direct materials cost per unit

R60

Direct labour cost per unit

R50

Fixed manufacturing overhead costs

R90 000

Variable manufacturing overheads cost per unit

R20

Fixed selling costs

R50 000

Fixed administrative costs

R60 000

Variable selling costs per unit

R25