Question $2(32$marks $)$ Enes Inc. is the main manufacturer of multicolour headbands in Western Jamaica. The following budgeted data relates to Enes Inc. for two periods: December $31,2022$and December $31,2023.$ Dec. $2022$ Dec. $2023$ Production $($ units $)54,00067,000$ Sales $($ units $)62,00073,000$ Opening stock $($ units $)30,00022,000$ The company incurred direct material and labour in addition to production and selling overheads per unit for both years as follows: $$ Direct material $ $300$ Variable production overheads $ $250$ Direct labour $ $420$ Variable selling and distribution $ $220$ The annual fixed production overheads are budgeted to be $ $900,000$and the company expects to produce $50,000$headbands each year. Overheads are absorbed on a per unit basis. Actual fixed production overheads in $2022$and $2023$were $ $960,000$and $ $1,230,000$respectively$.$ Actual fixed administration cost for both years was $ $550,000$per year with the selling price per unit being $ $1,250.$ Required: $($ a $)$Prepare the marginal costing income statements clearly showing the treatment of stock for $$December $31,2022$and $2023.(12$marks $)($ b $)$Prepare the absorption costing income statements for December $31,2022$and $2023.(16$marks $)($ c $)$Reconcile the income under both statements. $(4$marks $)$Question $3(41$marks $)$ Paper Sweets Supplies Limited is located in Kingston. On the last balance sheet date, inventory amounted to $ $12,500,000.$The entity conducted a stock count with the aim of valuing inventory for financial statements purposes. The count along with the relevant invoices indicated that there were $2,500$dairy $-$ nut chocolate bars as at December $31,2022$the last balance sheet date. Further investigations revealed that, this amount resulted from two different invoices. The following information relates to the $2,500$chocolate bars: $$ Invoice Date Invoice Number Quantity Total cost March $2,2022$ XY $15244,000$ $ $800,000$ July $22,2022$ XY $20052,500$ $ $550,000$ The inventory controller states that $60\%$of the inventory as at December $31,2022$relates to March $2,2022$invoice$,$ while, the remainder can be attributed to July $22,2022.$However$,$ the financial controller wants to ascertain the inventory balance as at December $31,2023$for financial reporting purposes. The controller also understands that although the last $-$ in $-$ first out $($ LIFO $)$method is not allowed by the international financial reporting standards $($ IFRSs $),$it is acceptable by the US GAAP. Hence, although the company $$ s policy is the average cost method, management wants to know the impact it has when used. $$ Below are data relating to the receipt and issue of dairy $-$ nut $-$ chocolate bars during the period ended December $31,2023$ : $$ Date Receipt Issue Unit cost Jan. $6,2023800$ $ $450$ Feb. $10,2023700$ $ $460$ Mar. $2,20231,000$ $ $230$ Apr. $1,20231,400$ $ $470$ Jul. $2,2023300$ $ $485$ Aug. $20,2023900$ $ $235$ Nov. $5,2023600$ $ $490$ Required: $($ a $)$Calculate the inventory value and profit for the period ended December $31,2023$using $$the company $$ s current inventory valuation policy. $(14.5$marks $)($ b $)$Calculate the inventory balance and profit for the period ended December $31,2023$using the method acceptable by IFRS. $(14$marks $)($ c $)$Calculate the inventory value and profit for the period ended December $31,2023$using the method acceptable by the US GAAP. $(12.5$marks $)$ Question $4(30$marks $)$ Mango Value Ltd is preparing its overhead budgets