0 Nos SECTION B CHOOSE ANY TWO QUESTIONS FROM THE FOLLOWING FOUR QUESTIONS QUESTION 1-30 MARKS Special ice Water Company produces and sells bottled water. The following costs are available for the year ended December 31, 2020. At the beginning of 2020, the company had 500,000 bottles of water in beginning inventory. During 2020, 7,500,000 bottles were produced and 7,500,000 bottles were sold. The unit selling price was $0.50 per bottle. Costs and expenses were: Variable costs per unit Prime costs 0.15 Variable manufacturing overhead 0.08 Variable selling and administrative expenses 0.02 Annual fixed costs and expenses Manufacturing overhead 500,000 Selling and administrative expenses 100,000 Required By 454 the closing (mante). a) Explain how the fixed manufacturing costs are shifted from one period to another period under an absorption costing method. (5 Marks) b) Compute the manufacturing cost of one unit of the product under both the variable costing and absorption costing methods. (5 Marks) c) What is the cedi value of the ending inventory under an absorption costing method? (5 Marks) (10 Marks) d) Prepare a 2020 income statement for Special Ice Water Company using a variable costing 0