XYZ Ltd produce a mini-kitchen called Tiny Tots, which is enjoying extensive popularity amongst young children....

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XYZ Ltd produce a mini-kitchen called Tiny Tots, which is enjoying extensive popularity amongst young children. The following data is available for the month of March 2018: Selling price (per unit) REGENT BUSINESS SCHOOL (RBS) - JANUARY 2022 R 116 Units manufactured Units sold BACHELOR OF COMMERCE YEAR 2-ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE Units in opening inventory 600 2 550 3 050 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: Fixed manufacturing overhead Fixed selling and administrative R81 000 R14 000 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. Required: 4.1. Prepare an income statement for the month using the variable costing method. (10) 4.2. Prepare an income statement for the month using the absorption costing method. (10) 69 XYZ Ltd produce a mini-kitchen called Tiny Tots, which is enjoying extensive popularity amongst young children. The following data is available for the month of March 2018: Selling price (per unit) REGENT BUSINESS SCHOOL (RBS) - JANUARY 2022 R 116 Units manufactured Units sold BACHELOR OF COMMERCE YEAR 2-ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE Units in opening inventory 600 2 550 3 050 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: Fixed manufacturing overhead Fixed selling and administrative R81 000 R14 000 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. Required: 4.1. Prepare an income statement for the month using the variable costing method. (10) 4.2. Prepare an income statement for the month using the absorption costing method. (10) 69