QUESTION 2 (20 Marks) The following information was extracted from the accounting records of Escourt Manufacturers for the year ended 30 April 2015: Units Inventory at the beginning of the year Nil Production for the year 33 000 Sales for the year (at R120 per unit) 30 000 R Direct materials cost per unit 30 Direct labour cost per unit 18 Variable manufacturing overheads per unit 12 Variable selling and administrative cost per unit 6 Fixed manufacturing overhead cost 350 000 Fixed selling and administrative cost 150 000 The company utilises the first-in-first-out method of inventory valuation Required: 2.1 Prepare the Income statement using the marginal costing method. (11 marks) 22 Prepare the Income statement using the absorption costing method. (9 marks)