Squash Ltd makes and sells one product. Currently, it uses absorption costing to measure profits and inventory values. The following data relates to the year ended 30th September 2021: Description of costs Direct Labour per unit Direct Material per unit Variable selling and administration cost Fixed production overhead per unit Fixed Selling & Administration cost per annum Total ($) 3 hours at $12 per hour 36 4 kg at $14 per kg 56 20% of sales value On expected output volume Fixed cost 40 $360,000 Expected output volume is 32,000 units per year. There were no units of finished goods inventory at 1st October 2020. The fixed overhead expenditure is spread evenly throughout the year. The selling price per unit is $280. For the two six-monthly periods detailed below, the number of units to be produced and sold are budgeted as follows: Production Sales 6 months ending 31st March 6 months ending 30th 2021 17,000 units 14,000 units September 2021 14,000 units 16,000 units The entity is considering whether to abandon Absorption Costing and use Marginal Costing instead for profit reporting and inventory valuation. REQUIRED: a) Illustrate Statement of Comprehensive Income (SOCI) using the following method: i) Marginal costing method. ii) Absorption costing method. (8 marks) (8 marks) b) Illustrate an explanatory statement reconciling the profits calculated in part a) above, under marginal costing with that of absorption costing. (6 marks)