Almighty Tools is a small manufacturing establishment. At the end of the accounting year, February 28, 2020, the following information was available.

$

Stocks, March 1, 2019

Raw materials 27,000

Finished goods 35,000

Work-in-progress 7,500

Factory wages (direct) 150,000

Factory salaries 25,700

Purchases of raw materials 36,300

Returns outwards 500

Factory power and fuel 83,200

Sales 532,800

Insurance 4,400

Administrative expenses 120,000

Returns inwards on finished goods 3,000

Stocks, 28 February, 2020

Raw materials 15,600

Finished goods 20,000

Work -in-progress 13,200

Machinery at cost 100,000

You are given the following additional information:

1. Machinery is to be depreciated at the rate of 25 per cent per annum

2. Factory power and fuel is in arrears of $720

3. Insurance, which is to be divided in the ratio 3:1 between the factory and the office, is prepaid in the amount of $200.

(a) Prepare a manufacturing account for the year ended February 28, 2020, showing clearly the following:

(i) The cost of raw materials consumed

(ii) The prime cost

(iii) Factory overheads

(iv) The total cost of production

(b) Prepare a Statement of Profit or Loss for year ended February 28, 2020.