SNP Ltd started its operations on 1 January 2020, and the planned production for the year was 20,000 units. This production level was achieved, but only 18,500 units were sold at $80 each. Other relevant data are as follows:

Direct material used $240,000 Direct labour cost incurred $120,000 Fixed manufacturing overhead (actual and planned) $150,000 Variable manufacturing (actual and planned) $72,000 Fixed selling and administrative expenses $180,000 Variable selling and administrative expenses $27,000

Required: Show all your workings. (i) Calculate the cost per unit under variable and absorption costing. (ii) Prepare an income statement for SNP Ltd for the year ending 31 December 2020 using variable costing. (iii) Prepare an income statement for SNP Ltd for the year ending 31 December 2020 using absorption costing.