QUESTION 1 Syarikat Putri Aliya Berhad is a manufacturer of healthy consumable products which uses natural plants as its ingredients. One of its popular products is known as 'AyuJelita' which is coffee mixed with nigella and it's sold in a box that comprises of thirty (30) sachets. Each box is sold for RM150. The production of one box of 'AyuJelita' requires 2 kilogram of raw materials AA at a cost of RM5 per kg, 3 kilogram of raw materials BB at a cost of RM4 per kg, and 2 hours of direct labour at RM10 per hour. The company's overhead costs consist of the following: Fixed production overhead RM5 per box Variable production overhead RM3 per box Variable selling overhead RM2 per box The budgeted annual production of AyuJelita' for the year of 2015 is 60,000 boxes. Other annual fixed costs of the company are as follows: RM General administration costs 600,000 Marketing and promotion costs 900,000 All fixed costs are expected to be incurred evenly throughout the year. The following information is available for the month of December 2015, regarding the production and sales of 'AyuJelita': No of boxes Opening inventory 2,500 Production 6,000 Sales 8,000 b. Prepare a statement to reconcile the differences between net profits reported under marginal costing and absorption costing. (6 marks) (Total: 21 marks)