Stock, production and sales data for Powerzone of CEVAG Company ltd. Are given as follows:

Period 1 Period 2 Period 3 Period 4

Production (litres) 60000 70000 55000 65000

Sales (litres) 60000 55000 65000 70000

Opening Stock (litres) - - 15000 5000

Closing Stock (litres) - 15000 5000 -

The financial data for an activity level of 60000 litres per period are as follows

Cost per litre

GH

Direct material 2.5

Direct labour 3

Production overheads = 200% of direct labour 6

Selling price per litre 18

Administrative overheads are fixed at GH 100000 per period and half of the production overheads are fixed.

Prepare the income statements of the CEVAG company ltd for the four periods using the principles of

1. Marginal costing

Absorption costing