Kindly solve this one

Question 1: James Ltd opened a plant for making spare parts on January 1. Data for the first two months operations are shown below. January (units) |February (units) Units started in month 3,900 2,700 Units completed (all sold) 2,400 2,400 Closing work in progress 1,500 1.800 Variable costs: Rupees Rupees Material 58,500 48,600 Labour 36,000 21,000 Fixed costs 63,000 63,000 Sales Revenue 112,800 120,000 January 31 the units were 100 percent complete for materials and 80 percent complete for labour in closing work in progress. February 28, the units in closing work in progress were 100 percent complete for materials and 50 percent complete for labour. The company's policy for valuation of work in progress in under review. The board of directors decided that two alternative profit and loss statement should be prepared for January and February. One statement would value work in progress on a weighted average cost basis and the other would adopt a first in first out basis. Fixed costs would be absorbed in proportion to actual labour costs in both cases. For both bases gave same value of closing work in process as well as profit. When the statements for February were presented to the board the following suggestions were made: We would not have a problem over the valuation basis if we used standard costs. It would be simpler and more informative to go to a direct cost valuation basis for management use. Required 1. Prepare profit and loss statements for November on two alternative bases decided by the board of directors showing calculations of cost of production report. (Marks 10) 2. Explain with supporting calculations the differences between the results shown by each statement you have prepared. (Marks 5) (Total Marks 15)