QUESTION $1$

$[20$ MARKS$]$

The following information relates to the only product made by Bakada CC during July $2023.$

Required

Draft the income statement for Bakada CC for July $2023$ using:

$1\mathrm{.}1$ The marginal costing method

$1\mathrm{.}2$ The absorption costing method

$1\mathrm{.}3$ Reconcile the profit calculated according to absorption with the profit calculated according to marginal costing method $($using $3$ methods$).$

Question $2$

Use the following information to calculate the value of inventory on hand on April $30$ and cost of sales using AVCO method.