The unit selling price and unit production costs of Silver Craft Ltd were as follows for the month of April 2019:-

Selling price Rs120

Direct materials Rs22

Direct labourRs17

Variable overheads Rs30

Fixed production overheads are based on a monthly production of 4000 units and amounted to Rs 80000.

During the month of April the firm had an opening inventory of 1000 units, produced 5000 units and had sold 3500 units.

Other monthly costs include:-

Fixed selling overheadsRs7000

Fixed administration overheads Rs12000

Fixed distribution overheadsRs6000

Variable selling overheads5% of sales value

Required:

(a)Profit statement based upon Marginal Approach

(b)Profit statement based upon Absorption Approach

(c)A statement reconciling profits based upon the two approaches.