The following accounts and amounts (balances are normal balances) were taken from the records of Prider Manufacturers Ltd at 30 June 2019.

Required

(a) Prepare a cost of goods manufactured statement for the year ended 30 June 2019.

(b) Prepare an income statement for the year ended 30 June 2019.

(c) The industry average for gross profit margin is 30%, and the profit margin is 10%. Explain how Prider Manufacturers Ltd’s financial performance compares with the industry average.

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Advertising expense $120000 Sales travel expense 36 600 Depreciation factory machinery Depreciation-office equipment Direct labour Factory power Factory rent 38 400 14400 390000 36000 240000 Administrative office rent Office salaries Rates-factory Discounts received on raw materials Raw materials inventory, 1/7/2018 Raw materials inventory, 30/6/2019 Raw materials purchases $ 60000 422 400 48000 8000 115200 124 800 1280000 Factory supplies 296000 Sales revenue 3800000 Finished goods, 1/7/18 260000 Sales returns 62800 Finished goods, 30/6/19 250000 Sales commissions 114600 Freight inwards (materials) 17400 Work in process, 1/7/2018 54000 Indirect labour 128000 Work in process, 30/6/2019 60000 Machinery repairs 77 800