Use the information provided below to answer the following questions:

2.1 Prepare the Income Statement of Clermont Manufacturers for August 2022 using the marginal costing method. (9 marks)

2.2 Prepare the Income Statement of Clermont Manufacturers for August 2022 using the absorption costing method. (8 marks)

2.3 Reconcile the profit calculated according to absorption costing (in question 2.2) with the profit calculated according to marginal costing (in question 2.1). (3 marks)

INFORMATION The following information relates to the only product produced by Clermont Manufacturers during August 2022:

Opening inventory	nil
Number of units manufactured	5 000
Number of units sold	4 500
Selling price per unit	R300
Direct materials cost per unit	R60
Direct labour cost per unit	R40
Fixed manufacturing overheads cost	R90 000
Variable manufacturing overheads per unit	R30
Fixed selling cost	R50 000
Fixed administrative cost	R60 000
Sales commission	R30 per unit