The following budgeted information relates to BEE Ltd$.,$ a company that sells one product.

July $2021$ Aug $2021$

Sales $($units$)19,00031,000$

Production $($units$)25,00025,000$

$$

Selling price per unit $17\mathrm{.}50$

Variable costs per unit:

Direct Material $5$

Direct labour $3$

Variable production cost $2$

Fixed production costs are $75,000$ per month. It is assumed that fixed production costs are to be absorbed on the basis of monthly production. There is no opening stock.

You are required to:

$($a$)$ Prepare profit and loss statements for the months of July and August on the basis of:

$($i$)$ Marginal costing

$($ii$)$ Absorption costing

$($b$)$ Reconcile the profit $/($loss$)$ figures between the two methods.