Philips Ltd has just completed operations for the year 2010. Company's assistant accountant (who is very inexperienced) prepared the following Profit and Loss Account for the year's activities: $ $ Sales 32,00,000 Operating expenses: Insurance 40,000 Gas, electricity and water 1,00,000 Direct labour cost 6,00,000 Indirect labour cost 1,20,000 Depreciation of factory equipment 1,60,000 Raw materials purchased during the year 12,00,000 Rent 4,00,000 Selling and admn. overheads 3,20,000 29,40,000 Net profit 2,60,000 You have been asked to assist the company in preparing a correct Profit and Loss Account for the year 2010. The following additional information is available. 1. The company is a manufacturing firm that produces a product for sale to outside customers. 2. 80 per cent of the rent paid applies to factory operations and the remainder to selling and administrative activities. 3. No raw materials were on hand on 1 January. However, raw materials of the value of $1,50,000, purchased during 2010, were still on hand on 31 December. The remainder was used in production during the year. 4. 70 per cent of the insurance and 90% of the gas, electricity and water paid apply to factory operations; the remainder apply to selling and administration activities. 5. Work-in-progress and finished goods inventories were: 1 January 31 December Work-in-progress 4,20,000 4,80,000 Finished goods 5,40,000 4,00,000 You are required to prepare- (1) Statement of Cost of Goods Manufactured in 2010 (ii) Corrected Profit and Loss Account for the year ended 31 December 2010