Question 2 Jan Limited produces and sells one product Details related to the performance of the company in the year to December, 2017 is as follows: Opening stock 3,000 units Budgeted production units 20,000 units Budgeted Fixed production costs K92,000 per year Budgeted Fixed Distribution costs K20,000 per year Selling price per unit K 14 Variable production costs per unit K 4.40 Variable Distribution cost per unit K1.00 Actual production units 21,000 units Actual sales units 22,000 units Required: (a) Prepare profit statements for the year 2017 using: (i) Absorption costing principles. (9 marks) (ii) Marginal costing principles. (6 marks) (b) Reconcile the reported profits reported under the two principles in (a) above. der the marks) (20 marks)