Woodwork Craft Dealers is a manufacturing company that budgeted to produce 15,000 units. At the end of February, 2010 the company had closing stock of 5,000 units. The following information was taken from the companys books for the month of February 2010:

	$
Direct Material cost per unit	200
Direct Labour cost per unit	150
Variable Overhead cost per unit	50
Fixed overhead cost	600000
Sales price per unit	750

During February 2010 the company produced 12,000 units and 11,000 units were sold. Administrative and selling overheads amounted to $80,000 and $70,000 respectively.

Required:

1. Calculate the value of the opening stock
2. Prepare profit statement using variable/marginal costing techniques for February 2010.
3. Prepare profit statement using absorption costing techniques for the month of February 2010. Show a reconciliation of the profit figures obtained above.