you should Calculate the gross profit using income statement (absorption) approach and contribution margin (marginal) approach, then accurately apply these approaches to prepare the income statement and balance sheet for the first quarter of 2018. Knowing that Para-sighting only deals with One- Off Job orders from tourism companies, among process costing and job order costing methods, explain which method is more appropriate for Para-sighting and how it is applied. Among different inventory costing systems such as FIFO, LIFO and the others, explain how you apply the most appropriate inventory costing system in the case of Para-sighting.

Balance sheet- related information at the end of first quarter (operating/ net income is NOT included):

G. Owners Equity ($ 2000000)

H. Cash ($ 395000)

I. Office building ($ 454000)

J. Office building- accumulated depreciation ($ 4000)

K. Office equipment ($ 1030000)

L. Officeequipment-accumulateddepreciation($30000)

M. Accounts Receivable ($ 1000000)

N. Accounts Payable ($ 45000)

O. Manufacturing and sales of the company:

In the first quarter of year 2018 Para-Sighting company manufactured 20 units and sold them all.