QUESTION 3 (15 Marks: 30 Minutes) CC Cycles (Pty) Ltd (CCC) is a bicycle shop in George, Western Cape. CCC assembles and sells bicycles to the public. CCC uses an actual costing system in which unit costs are calculated monthly. Data relating to February and March 2021 are as follows: February March 0 500 350 150 400 520 Unit data: Opening inventory Production Sales Variable cost data: Manufacturing costs per unit produced Selling costs per unit sold Fixed cost data: Manufacturing costs Marketing costs The selling price per bicycle is R24 000. Inventory is valued on the First-In-First-Out method. R10 000 R3 000 R10 000 R3 000 R200 000 R600 000 R200 000 R600 000 Required: 3.1 Present an income statement for CC Cycles for February and March 2021. 3.1.1 Under the absorption costing method (5 marks) 3.1.2 Under the variable costing method (5 marks) 3.2 Reconcile the profit calculated under the absorption costing system and variable costing system for February and March 2021. Explain any differences between the profit calculated under the absorption costing method and the variable costing method