Using the information below, prepare profit statements for June and July using:

$($a$)$ marginal costing,

$($b$)$ absorption costing.

A company produces and sells one product only which sells for $$50$ per unit. There were no stocks at the end of May and other information is as follows.

Standard cost per unit

Direct material

Direct wages

Variable production overhead

Budgeted and actual costs per month

Fixed production overhead

Fixed selling expenses

Fixed administration expenses

Variable selling expenses $10\%$ of sales value

Normal capacity is $11,000$ units per month.

The number of units produced and sold was:

Sales

Production

C

$18$

$4$

$3$

$99,000$

$14,000$

$26,000$

$\backslash$table$[[,$June July,$],[$Sales$,$Units units,$],[$Production$,12,800,11,000],[,14,000,10,200]]$