QUESTION $2(20$ Marks$)$

REQUIRED

Use the information provided below to answer the following questions:

$2\mathrm{.}1$ Prepare the Income Statement of Clermont Manufacturers for August $2022$ using the

marginal costing method. $(9$ marks$)$

$2\mathrm{.}2$ Prepare the Income Statement of Clermont Manufacturers for August $2022$ using the

absorption costing method. $(8$ marks$)$

$2\mathrm{.}3$ Reconcile the profit calculated according to absorption costing $($in question $2\mathrm{.}2)$ with the

profit calculated according to marginal costing $($in question $2\mathrm{.}1).(3$ marks$)$

INFORMATION

The following information relates to the only product produced by Clermont Manufacturers during August $2022$:

Opening inventory Nil

Number of units manufactured $5000$

Number of units sold $4500$

Selling price per unit R$300$

Direct materials cost per unit R$60$

Direct labour cost per unit R$40$

Fixed manufacturing overheads cost R$90000$

Variable manufacturing overheads per unit R$30$

Fixed selling cost R$50000$

Fixed administrative cost R$60000$

Sales commission R$30$ per unit