$1\mathrm{.}2$ Explain fully why the profits reported in period $1$ differ when profit is calculated using absorption costing and marginal costing. Calculations are required to support your explanation.

$(6)$

Question $2$

$(10$ Marks$)$

Use the following information to calculate the value of inventory on hand on April $30$ and issue price to production during April using FIFO inventory system.

$\backslash$table$[[01-$April,Beginning Inventory,$\backslash$table$[[50$ units @ R$15$ per$],[$unit$]]],[5,$Purchase,$135$ units @ $20$ per unit$],[9,$Issue to production,$95$ units$],[11,$Purchase,$\backslash$table$[[30$ units @ R$16$ per$],[$unit$]]],[16,$Purchase,$78$ units @ R$17$per unit$],[20,$Issue to production,$125$ units$],[30,$Issue to production,$65$ units$]]$

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