QUESTION TWO $[20]$

The following information was extracted from the accounting records of Palladium Limited for the

year ended $31$ August $2024$

Units

Inventory on $1$ September $2023$: Nil

Production for the year: $100000$ units

Sales for the year: $90000$ units

Fixed costs

Manufacturing: R$600000$

Marketing and administration: R$400000$

Variable costs

Direct Materials $($per unit produced$)$: R$30$

Direct Labour $($per unit produced$)$: R$12$

Marketing and administration $($per unit sold$)$: $12\mathrm{.}5\%$ of the selling price

Selling price per unit R$80$

Required

Use the information provided above to prepare the Income Statement of Palladium Limited for the

year ended $31$ August $2024$ using the:

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

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