The listing of the ledger accounts (unadjusted) of Smart Manufacturing Systems Pty Ltd at 30 June 2016 is presented below. All ledger balances are normal balances.

	SMART MANUFACTURING SYSTEMS PTY LTD Unadjusted List of Accounts as at 30 June 2016
						Balance
		Cash at bank Accounts receivable Finished goods inventory, 1/7/15 Work in process, 1/7/15 Raw materials inventory, 1/7/15 Prepaid rent Machinery and equipment Accumulated depreciation Accounts payable Loan payable Share capital Retained earnings Sales Direct labour Raw materials purchases Indirect labour Factory supplies Electricity and gas Insurance Factory rent Selling and distribution expenses Administrative expenses Interest expense			$	22050 55450 34500 11250 5550 81000 294000 52500 27000 112500 70000 55500 1290000 324000 307500 106500 27000 84000 24450 47250 48000 100500 34500

Additional information relating to the company is as follows:

1. The inventories as of 30 June 2016 were:

Raw materials Work in process Finished goods

$4650 13050 37500

2. On 1 January 2016, the company paid $81000 for the next 12 months factory rent. Prepaid rent was debited at the time of the transaction.

3. The Machinery and Equipment account consists of $220500 of factory machinery and $73500 of office equipment. All machinery and equipment is depreciated using a 7-year life.

4. Expenses incurred as of year-end but not yet recorded are: direct labour, $6000; indirect labour, $1800; administrative expenses, $1050.

5. The electricity and gas, rent and insurance costs are related to factory operations.

6. Allow for company income tax expense at 30% of profit before tax.

Required

A. Prepare a worksheet including a pair of columns for unadjusted trial balance, adjustments, manufacturing, and the financial statements.

B. Prepare a cost of goods manufactured statement.

C. Prepare the closing entries.

D. Calculate the relationship between factory overhead costs and direct labour costs. Using that relationship, calculate the labour and overhead included in the ending inventories if work in process ending inventory contains $3 600 of raw materials and $6 000 of raw materials is included in the finished goods inventory.