The following accounts and amounts (balances are normal balances) were taken from the records of New Manufacturers at 30 June 2025.

Required

(a) Prepare a cost of goods manufactured statement for the year ended 30 June 2025.

(b) Prepare an income statement for the year ended 30 June 2025.

(c) The industry average for Gross Profit margin is 30% and the Profit margin is 10%. Explain how New Manufacturers’s financial performance compares to the industry average.

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Advertising expense $120000 Sales travel expense 36 600 Depreciation factory machinery 38 400 Depreciation office equipment 14 400 Direct labour Factory power Factory rent Factory supplies Finished goods, 1/7/2024 296 000 260 000 Finished goods, 30/6/2025 Freight inwards (materials) Indirect labour Machinery repairs 390 000 36000 240 000 Administrative office rent Office salaries Rates - factory Discounts received on raw materials Raw materials inventory, 1/7/2024 Raw materials inventory, 30/6/2025 Raw materials purchases Sales revenue Sales returns Sales commissions $ 60000 422 400 48000 8000 115200 124 800 1280000 3800000 62 800 114600 250000 17 400 128000 77 800 Work in process, 1/7/2024 Work in process, 30/6/2025 54000 60000