Prepare a manufacturing account and statement of profit or loss from the following balances of Z. Varga for the year ending 31 December 2017.

Rent is to be apportioned: Factory 3/4 Office 1/4. Inventory at 31 December 2017 was: Raw materials £57,800; Work-in-progress £49,200; Finished goods £57,692.

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Inventory at 1 January 2017: Raw materials Work-in-progress Finished goods Purchases: Raw materials Carriage on raw materials Direct labour Office salaries Rent Office lighting and heating 50,800 62,200 46,520 183,070 3,920 168,416 66,838 10,400 8,840 Depreciation: Works machinery Sales Factory fuel and power 20,400 Office equipment 4,600 637,244 16,240