QUESTION TWO Read the case study below and answer the questions that follow. Hendry Limited produces a mini-kitchen called Town Cook, which is enjoying extensive popularity amongst young children. The following data is available for the month: R 116 Selling price (per unit) Units in opening inventory 600 Units manufactured 2 550 3050 Units sold 100 Units in closing inventory Variable costs per unit: Direct materials R12,00 Direct labour R50,00 Variable manufacturing overhead R6,50 Variable selling and administrative R10,00 Fixed costs: R81 000 Fixed manufacturing overhead R19 000 Fixed selling and administrative The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. (where applicable, round off amounts to two decimal places) 2.1 Calculate the unit product cost for the month under marginal costing. (3 marks) 2.2 Calculate the unit product cost for the month under absorption costing (3 marks) 2.3 Prepare an income statement for the month using the absorption costing method. (7 marks) 2.4 Prepare an income statement for the month using the Marginal costing method. (7 marks)