QUESTION 4 Istanbul Trading Berhad produces and sells Turkish lamps. Budgeted information for its product, Tiara, in the first quarter of 2021 are available: 6,000 units RM14.40 per unit RM71.00 per unit Inventory, 1 January 2021 Fixed Manufacturing Overhead Variable Cost of Goods Manufactured During January: Sales Production Fixed Manufacturing Overhead Variable Eost of Goods Manufactured Los Variable Selling & Administrative Expense Fixed Selling and Administration Selling Price 75,000 units 70,000 units RM864,000 (based on normal volume: 60,000 units) RM71.00 per unit RM4.70 per unit RM380,000 RM115 per unit Required: a) Determine the net income for the first quarter of 2021 under the: (i) Absorption costing method (9 marks) (ii) Variable costing method (8 marks) b) Reconcile the differences between the net income generated under absorption costing method and variable costing method. (3 marks) [TOTAL 20 MARKS]