REQUIRED

Use the information provided below to answer the following questions:

2.1 Prepare the Income Statement of Clermont Manufacturers for August 2022 using the marginal costing method. (9 marks)

2.2 Prepare the Income Statement of Clermont Manufacturers for August 2022 using the absorption costing method. (8 marks)

2.3 Reconcile the profit calculated according to absorption costing (in question 2.2) with the profit calculated according to marginal costing (in question 2.1)