Lo Introduction (1 mark) Create one business and state the profile of the business: a) Name of the business, place of the business, principle activity of the business b) Name of a single product of the business, actual and normal units produced during the first month of production c) Name and detail of one direct material used to produce the single product during the first month of preluction d) Detail of sale units and price during the first month of production 2.0 Business transactions (1 mark) Create the following business transactions for the first month of production: a) Three detail direct material purchased transactions b) Three detail direct material issued to the production transactions c) Three detail direct labour costs d) One detail variable manufacturing overhead and one detail fixed manufacturing overhead transactions e) One detail variable non manufacturing overhead and one detail fixed non manufacturing transactions 3.0 Accounting for Material (4 mark) a) Use a store ledger card to record the above 2(a) and 2 (b) transactions based on First In First Out (FIFO) method and Weighted Average Cost (AVCO) Method b) Calculate the cost of direct material used in the production based on FIFO and AVCO methods 4.0 Absorption costing and variable costing (8 marks) a) Calculate the unit product cost (FIFO & AVOO) using absorption costing and variable costing methods b) Prepare the statement of profit or loss (FIFO and AVCO) using absorption costing and variable costing methods