Bredon Inc commenced business on January 1, producing a single product. The normal capacity of the firm is 10,000 units per month and fixed production overheads are budgeted at $100,000 per month. The standard cost of each unit is as follows: Direct material cost $20.00 $15.00 Direct wages Variable production overhead $05.00 Fixed production overhead $10.00 The selling price per unit is $90.00 and the number of units produced and sold was: January February Sales 11,000 10,000 Production 12,000 9,000 Selling and administrative expenses per month are: Fixed selling expenses $26,000 $24,000 Fixed administration expenses Variable selling expenses 15% of sales value Required: a. Compute the unit product cost under absorption and under marginal costing b. Determine the value of closing stock for the period based on absorption costing. c. Determine the value of closing stock for the period based on marginal costing b. Prepare profit statements for the period based on marginal costing. b. Prepare profit statements for the period based on absorption costing c. Prepare a reconciliation of profits statement for the two profit statements