Warren Limited is a semiconductor manufacturing company. The following data relates to the production and sales of a product in year 2020. Units produced Units sold January - June 500 400 July - December 600 650 The budgeted information on the selling price and costs are shown below: Selling price per unit 500 Variable costs per unit: Direct materials Direct labour Variable production overhead 100 120 50 Fixed costs for half year: Fixed production overhead 55,000 Fixed selling and administration overhead 30,000 Normal budgeted output is expected to be 550 units for every half year. Actual fixed manufacturing overhead is assumed to be the same as budgeted. There is no opening inventory at the beginning of the year 2020. REQUIRED: (a) Prepare absorption costing statements for the two 6-month periods during the year. [12] (b) Prepare marginal costing statements for the two 6-month periods during the year. [8] (c) Prepare a reconciliation statement to reconcile the difference in net profit between absorption costing and marginal costing. Explain the reason for the difference between the two profits. [5]