Use the information provided below to prepare the Income Statement of Coastal Manufacturers for the year ended 31 December 2022 using the following methods:

2.1 Variable costing (11 marks)

2.2 Absorption costing (9 marks)

INFORMATION

Coastal Manufacturers commenced operations on 02 January 2022 with the intention of producing 110 000 units. However, during 2022 Coastal Manufacturers produced only 100 000 units of the product. It sold 60% of the units produced at a selling price of R130 per unit and 20% of the units produced at a selling price of R140 per unit. Direct materials cost, direct labour cost and variable manufacturing overhead costs amounted to R20, R10 and R8 per unit respectively. Fixed costs totalled R1 300 000 of which 60% was for manufacturing and 40% for administration and marketing. Other administration and marketing costs amounted to R21 per unit sold. Coastal Manufacturers had no raw materials or work in process inventories at the end of 2022.