Help me with the questions provided Dan Wood Ltd commenced business on 1s January 2020 making one product only,which sells for K160 per item. The production and sales data for each of the first threemonths of 2020 was as follows:JanuaryFebruaryMarchSales in units2,4002,5003,800Production in units2,7002,4004,000Actual information for each month was as follows:Direct materials3 kilograms at K5 per kilogramDirect labour4 hours at K10 per hourVariable production overheadsSales commission150% of direct labour10% of sales valueFixed production overheadsFixed selling overheadsK10,000K35,000There was no opening inventory at the start of January. Fixed productionoverheads are budgeted at K120,000 per annum and are absorbed into productsbased on a budgeted normal output of 30,000 units per annumRequired:(a) Prepare a profit statement for each of the three months using absorptioncosting principles(b) Prepare a profit statement for each of the three months using marginalcosting principles.

1. Direct Material Cost per unit = 3kg x K5 = k15 2. Direct Labor Cost per unit =4 hours x K10 =…

Dan Wood Ltd commenced business on 1t January 2020 making one product only, which sells for K160 per item. The production and sales data for each of the first three months of 2020 was as follows: |January February March Sales in units 2,400 2,500 3,800 Production in units 2,700 2,400 4,000 Actual information for each month was as follows: Direct materials 3 kilograms at K5 per kilogram Direct labour 4 hours at K10 per hour Variable production overheads 150% of direct labour 10% of sales value Sales commission Fixed production overheads Fixed selling overheads K10,000 K35,000 There was no opening inventory at the start of January. Fixed production overheads are budgeted at K120,000 per annum and are absorbed into products based on a budgeted normal output of 30,000 units per annum Required: (a) Prepare a profit statement for each of the three months using absorption costing principles (b) Prepare a profit statement for each of the three months using marginal costing principles.