QUESTION 1 (20 Marks ] A company manufactures and solis a single product. Budgeted data per unit of the product is: Selling Price Food Production overhead 2.90 "All variable costs are manufacturing lle there are no non-manufacturing variable costs. The above fied producion overhead absorption rate is based on budgeted production of 12,000 units per period. Budgeted non-production overhead (all fixed) is R16, 800 per period. Actual sales and production for two ponods has beenc Period 1 Period 11 800 units 12 400 Junks Production 12:000 units 12 300 unk There was no stock at the start of Ponod 1. The seling price, unit warlable costs and total fixed costs were as per budget in both periods. REQUIRED 1.1 Propane statements of Comprehensive income for both periods ic period I & Period 2), using absorption costing, showing the actual results for each of the two periods. The company wishes to compare the results reported in [1.1] above with those that would be reported using marginal costing. 1.2 Prepare the statement of comprehensive income for periods (ic period 1 & Period 2), using marginal costing showing the actual results for each of the two ponods. 1.3 Explain fully why the profits reported in period 1 differ when profit is calculated using absorption costing and marginal costing. Calculations and naquined to support your explanation. Question 2 [10 Marks) Use the following information to calculate the value of inventory on hand on April 30 and issue price to production during April using FIED Inventory system. 50 units (@ 15 per Of-April Beginning Inventory unit 6 1 Purchase 1:35 units (@ 20 per unit 91 Issue in production 95 units 30 units (@) R16 per 11 Purchase 16 Purchase 78 units (@ R17per unit 20 Issue lo production 30 Issue lo production 65 units THE END