Sycamore Ltd manufactures and sells product Z at 50 each. The standard (budgeted) variable production cost of product Z is 20 per unit and the fixed production overhead (Overhead Absorption Rate) is 4 per unit.

In addition to the above, each sales unit incurs a selling and distribution cost of 2 per unit. Fixed selling and distribution costs are 10,000 monthly.

For the months of January to March 2020, actual production and sales units and actual fixed production overhead were as follows:

	January	February	March
Sales (units)	4,000	4,200	3,800
Production (units)	4,500	4,200	3,600
Actual fixed production overhead ()	18,000	16,000	15,000

All other costs were as per the standard (budget), including the selling and distribution costs. Inventory level of product Z at 1^stof January was zero.

REQUIRED

1. Prepare for each of the 3 months profit statements using both absorption costing principles and marginal costing principles. [15 marks]