Question 3 (30 marks) The Nima Company Limited produces and sells executive office desks from a shop at the Junction Mall. Selected cost and operating data relating to the product for 2018 is given below: 3 GHC 50 Selling Price Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative per unit sold Fixed selling and administrative per year 10 6 4 100,000 3 50,000 Units in beginning inventory 0 Units produced during the year 10,000 Units sold during the year 9,000 Required: a. Assume the company uses absorption costing method. i. Compute the unit product cost. 3 marks ii. Prepare an income statement for the year. 6 marks b. Assume the company uses variable costing method. i. Compute the unit product cost. 3 marks ii. Prepare an income statement for the year. 6 marks c. Reconcile the variable costing and absorption costing methods operating incomes and explain why they are different. 8 marks