QUESTION THREE The unit selling price and unit production costs of Silver Craft Ltd were as follows for the month of April 2019:- Selling price Rs 120 Direct materials Rs22 Direct labour Rs17 Variable overheads Rs30 Fixed production overheads are based on a monthly production of 4000 units and amounted to Rs 80000. During the month of April the firm had an opening inventory of 1000 units, produced 5000 units and had sold 3500 units. Other monthly costs include:- Fixed selling overheads Fixed administration overheads Fixed distribution overheads Variable selling overheads Rs 7000 Rs12000 Rs6000 5% of sales value Required: (a) Profit statement based upon Marginal Approach (b) Profit statement based upon Absorption Approach (c) A statement reconciling profits based upon the two approaches