QUESTION $2(20$ Marks$)$

REQUIRED

Prepare the Income Statement of Tyger Limited for the month ended $31$ March $2024$ using each of the

following methods from the information provided below:

$2\mathrm{.}1$ Variable costing $(10$ marks$)$

$2\mathrm{.}2$ Absorption costing. $(10$ marks$)$

INFORMATION

The following information was extracted from the accounting records of Tyger Limited for the month ended

$31$ March $2024$:

Inventory on $01$ March $2024$ Nil

Production $100000$ units

Sales $80000$ units

Selling price per unit R$100$

Direct materials cost per unit R$20$

Direct labour cost per unit per unit R$14$

Variable manufacturing overheads cost per unit R$6$

Fixed manufacturing overheads cost R$400000$

Salespersons$$ salaries R$200000$

Sales commission $($as a percentage of sales$)5\%$

Administration salaries and rent expense R$240000$

Other administration costs R$6$ per unit sold