QUESTION 2 (20 MARKS) REQUIRED 2.1 Use the information provided below to prepare the Income Statement of Deere Limited for the month ended 31 March 2020 using the: 2.1.1 Variable costing method. (9 marks) 2.1.2 Absorption costing method. (8 marks) 2.2 Reconcile the profit calculated according to variable costing (in question 2.1.1) with the profit calculated according to absorption costing (in question 2.1.2). (3 marks) INFORMATION The following information was extracted from the accounting records of Deere Limited for the month ended 31 March 2020: Inventory on 01 March 2020 Nil Production 50 000 units Sales 45 000 units Selling price per unit R120 Manufacturing costs: Fixed R300 000 per month Variable R50 per unit Marketing costs: Advertising and salaries R42 000 per month Sales personnels commission 5% of sales Administration costs: Office costs including salaries R60 000 per month Other office costs R7 per unit sold