QUESTION ( UNIT1 ABSORPTION VS MARGINAL 2nd Opportunity Test ) Tia Clothing (Pty) Ltd manufactures summer t-shirts made out of cotton. One kilogram of cotton costs N$150.00 per finished t-shirt. During the month of October 2022, 1 000 t-shirts were produced of which 90% were sold at N$ 600.00 each. It has taken three hours to manufacture one t-shirt at N$ 30.00 per hour. Variable manufacturing overhead cost per t-shirt amounted to N$ 57.00. Monthly total manufacturing overhead costs amounted to N$ 1000 000.00. During the same month, total fixed administrative costs amounted to N$ 115 000.00. A sales commission of five per cent is paid to the sales person for every t-shirt sold every month. There was no work in process or opening inventory at the beginning of October 2022. Required: Marks 8.1. Compute the production cost per unit according to: a) Absorption costing method b) Marginal costing method 2.5 2.5 8.2. Prepare the Statement of Comprehensive Income for the month of October 2022 according to: a) Absorption costing method b) Marginal costing method 10 10 8.3. Reconcile the difference in profits (if there is any) 5 TOTAL MARKS FOR QUESTION 30