Direct labour 35 10 Variable 15 5 production overheads 75 25 Fixed 30 20 production overheads Fixed administration overheads were $340,000 and Fixed selling overheads were $40,000. As the Accountant you have been asked to do the following: a. Determine the amount of stock in store at the end of period 3. b. Calculate the full cost per unit of production. C. Prepare an income statement based on marginal costing principles. d. e. Prepare an income statement based on absorption costing principles. Management is planning on launching a marketing campaign to increase the sale of Sham. They believe that the higher selling price of Sham means that it will generate more revenue and profit than Wham. Advise management on the product they should focus on increasing sales for by preparing a reconciliation of the profits. Rio Ltd makes and sells two products, Sham and Wham. The following information is available for period 3: Sham Wham Production 7,500 5,400 (units) Sales (units) 7,000 3,600 Opening stock 480 300 (units) Budgeted 8000 5000 capacity (units) Financial Data: S $ Unit selling price 115 110 Unit cost: Direct materials 25 10 10 Direct labour 35 10