Question 4 1. The following information was extracted from the ledgers of Billy Company for its products for the year ended 31 December 2002: ＄ Sales (100,000 units) 500,000 Direct materials 100,000 Direct wages 70,000 Fixed production overheads 110,000 Variable production overheads 20,000 Administration expenses (60% fixed, 40% variable) 80,000 Selling expenses (60% fixed, 40% variable) 130,000 Required: (a)Prepare the Profit and Loss Statement by using Absorption Cost method. (b)Prepare the Profit and Loss Statement by using Marginal Cost method.