STION 2 (22 marks; 36 minutes) Zwatch Company manufactures trendy, high-quality moderately priced watches. As Zwatch's or financial analyst, you are asked to recommend a method of inventory costing. The CFO will use recommendation to prepare Zwatch's 2018 income statement. The following data is for the year sume standard costs per unit are the same for units in vegin..... ring the year. Any production-volume variance is written off to cost of goods sold ich it occurs. Prepare income statement under absorption costing for the year ended 31 December 201 quired: Prepare income statement under variable costing for the year ended 31 December 2018. 3 Reconcile the profits