QUESTION 2 Hennessey Ltd has provided the following data for the year ending 30 June 2020: $ 126 000 e 81 000 21 000 19 350 4 500 7 500 Balances in the ledger at 30 June 2020 included: Finished Goods Inventory (1 July 2019) Direct Materials Inventory (1 July 2019) Indirect Materials Inventory (1 July 2019) Work in process Inventory (1 July 2019) Accrued direct wages Depreciation on factory plant Transactions during the year ending 30 June 2020 Sales Purchases direct materials Returns of direct materials Freight inwards - Direct materials Direct wages paid Supervisor's salary Indirect materials purchased Factory rates Other factory expenses Additional information Physical stocktake at 30 June 2020:- Direct material inventory on hand Finished goods inventory on hand Indirect material inventory on hand Work in process inventory on hand 810 000 e 442 500 7 500 4 500 148 500 24 000 39 000 14 755 66 840 ta 88 650 127 650 e 16 8002 20 550 Required; a. Prepare a Cost of Goods Manufactured Statement for Hennessey Ltd for the period ended 30 June 2020. b. Prepare the Income Statement for Hennessey Ltd for the year ended 30 June 2020. ( $ ( 7 a) + HENNESSEY LTD Cost of Goods Manufactured Statement For the Year Ended 31 December 2020 $ $ Work in process inventory, July 12 Direct materials Opening raw materials Net Purchases Freight inwards { Closing raw materials Direct materials used Direct labour Direct wages incurred Manufacturing overhead Indirect materials Opening indirect materials { Purchases 7 7 ( ^. ( 7 Closing indirect materials Indirect materials used Supervisor's salary Factory rates Depreciation factory plant Other factory expenses Total manufacturing overhead Total manufacturing costs Closing work in process inventory_ Cost of goods manufactured [ [ b) + $ HENNESSEY LTD Income Statement For the Year Ended 31 December 2020 $ Sales Less: Cost of goods sold Opening inventory finished goods Cost of goods manufactured 1 1 1 1 1 1 1 1 Less: Closing inventory finished goods Gross profit