Kantey ltd makes and sells Tinkalon Cream. At the beginning of January 2018, there were no opening stocks of the product, for which the variable production cost and the sales price were Ghs 4 and Ghs 6 per unit respectively. Fixed costs were Ghs 2,000 per month, of which Ghs 1,500 were fixed production costs. January FebruarySales (Units) 1,200 1,800Production (Units) 1,500 1,500Required: Prepare an operating statement for each month using (i) Marginal Costing (ii) Absorption Costing. Assume a normal output of 1,500 units per month. Explain why the profit figures reported under the two techniques disagree. (c) (i) What is Marginal Costings? (ii) What is Absorption Costing?

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