The financial manager of Seiko Manufacturers provided the following budgeted information for the month ended 31 August 2020:

Estimated production 5 000 units

Estimated sales 4 500 units

Selling price per watch R900

Variable manufacturing costs per watch R550

Fixed manufacturing overheads R300 000

Marketing and administrative costs:

Fixed costs R150 000

Variable costs per watch sold R100

RequiredPrepare the Income Statement for the month ended 31 August 2020 using the absorption costing method.