Q$.$ No$.3($b$).$ A company produces a single product. Normal volume of output is $10,000$ units. Other data are

following:

Raw Materials

Direct Wages

Variable Manufacturing Overhead

Fixed Manufacturing Overhead Rate

Fixed Selling and Distribution Cost

The operations of the year ended December of last year was:

Opening Stock $2,000$ units

Production $,9,000$ units

Closing Stock $,1,000$ units

Selling Price per Unit Rs$.20$

Rs$.5$ per unit

Rs$.4$ per unit

Rs$.1$ per unit

Rs$.3$ per unit

Rs$.16,000$

Required: $($i$)$ Income Statement under Absorption Costing

$($ii$)$ Income Statement under Variable Costing

$($ii$)$ Reconciled Profit between variable and absorption costing with possible reason