Prepare operating statements for three quarters using marginal and absorption costing, then reconcile the profit.

Here is the operating statement for the three quarters using marginal costing and absorption costing, followed by the reconciliation statement.

First, let's calculate the per-unit costs and total fixed costs.

1. Per Unit Costs:

• Direct Materials (DM) = $\text{N}500$

• Direct Labor (DL) = $\text{N}200$

• Variable Overhead (VO) = $\text{N}100$

• Fixed Overhead (FO) = $\text{N}400$ (This rate is based on a normal capacity of $20,000$ units per month).

• Variable Manufacturing Cost per unit (Marginal Costing Product Cost):

  $$$$