The table below presents a summary of the sales and cost figures for the first two years of operation of HKUKs France division:

Selling price per unit of soap	100
Manufacturing Costs per unit:
Direct Material	27
Direct Labour	13
Variable Overhead	8
Fixed manufacturing cost per year	240,000
Selling and Administrative costs:
Variable selling and administrative costs per unit	10
Fixed selling and administrative costs per year	140,000

	2019	2020
Units in beginning stock	0	4,000
Units produced during the year	20,000	12,000
Units sold during the year	16,000	16,000

Required:

1. Determine for each of the two years, the unit product cost under variable and absorption costing.
2. Prepare a profit and loss account for 2019, 2020 using variable costing and Absorption Costing