E-LEARNING COST ACCOUNTING ASSIGNMENT Answer all the THREE Questions. 1Mr Gardens, the financial controller of Sugarland Ltd, accidentally tossed the company's cost records into a wastebasket which had been light .On realising that mistake, he rushed to the roaring blaze and managed to retrieve only a few of the records. From the salvaged records, he managed to determine the following facts about the current year 2020: (i) Sales totaled sh 1,000,000 during 2020. (ii) The beginning inventories for the year were : work in progress sh 120,000 ; Finished goods sh 60,000 . (iii) There were no closing inventories of raw materials. (iv) Direct labor is equal to 25% of conversion cost; direct, labor is also equal to 40% of prime cost. (v) The work in progress inventory decreased by sh 20,000 during the year. (vi)Gross margin during the year was 55% of sales. (vii) Manufacturing overheads amounted to sh 240,000 in the year. (iv)Administrative expenses for 2014 were twice as great as net income but only 25% of selling expenses. The company's Board of directors requires cost statements from Mr. Gardens for an urgent board meeting. Required : Prepare cost statements in good form to show: a) Cost of goods manufactured (10 marks) b) Cost of goods sold ( 5 marks) c) Profit for the year ( 5 marks) (clearly show workings for direct material and direct labor cost)