Question 1 Kamelwa Limited manufactures and sells a single product coded Kams. The following data relate to the four quarters in the last financial year. Selling price per unit Variable cost per unit Fixed cost per quarter 110 60 12000 Normal activity is 500 units and production and sales for the four quarters are as follows: Quarter 1 Units Quarter 2 Units 400 500 Quarter 3 Units 550 450 Quarter 4 Units 450 500 Sales Production 500 500 There were no opening inventory at the start of quarter 1. Required (1) Prepare profit statements for each of the quarters 1 to 4, based on absorption costing principles. Prepare profit statements for each of the quarters 1 to 4, based on marginal costing principles. (iii) Comment briefly on the results obtained in each period and in total by the two systems. Question 1 Kamelwa Limited manufactures and sells a single product coded Kams. The following data relate to the four quarters in the last financial year. Selling price per unit Variable cost per unit Fixed cost per quarter 110 60 12000 Normal activity is 500 units and production and sales for the four quarters are as follows: Quarter 1 Units Quarter 2 Units 400 500 Quarter 3 Units 550 450 Quarter 4 Units 450 500 Sales Production 500 500 There were no opening inventory at the start of quarter 1. Required (1) Prepare profit statements for each of the quarters 1 to 4, based on absorption costing principles. Prepare profit statements for each of the quarters 1 to 4, based on marginal costing principles. (iii) Comment briefly on the results obtained in each period and in total by the two systems