QVC Company produces kitchen cabinets at its factory. The following relates to the production of the kitchen cabinets for the period ending December 2020. Production (units) Sales (units) Fixed production cost Fixed Selling overhead Budgeted 75,000 72,500 $750,000 $562,500 Actual 80,000 77,500 $781,250 $562,500 The fixed production overhead was absorbed at a pre-determined rate per unit produced. Each kitchen cabinet was sold for $450. At the beginning of January 2020, there was opening stock of 4,375 units valued at $262,500; this includes fixed production overhead of $43,750. Required: 1. Prepare marginal costing income statement for the company as at December 31, 2020 (7 marks) 2. Prepare an absorption costing income statement for the company as at December 31, 2020 (8 marks) 3. Prepare the reconciliation statement as at December 31, 2020. (5 marks)