QUESTION 6 Manufacturing statement and income statement (18 marks) Spreadsheet. See the Spreadsheet Advice PDF and COGMS Resources on Moodle. Check the assignment requirements belowpayingparticular attention to the spreadsheet requirements. Ensure you have separate data and report areas with the latter showing only fomulas. Use IF function to allow for the possibility of either a net profit or a net loss. Show row and column headings and past both a nomal view and a fomula view. D E F G H J KL Tendulkar Manufacturing Co Data Input Area Transaction Summary for Year $ Raw material purchases 500.000 Inventories Inward charges on raw materials 22,000 Finished Goods 1/10/X6 70,000 Productive labour 130,000 Raw Materials 1/10/X6 110,000 Manufacturing expense 60,000 Work in Process Material 1/10/X6 15,000 Sales of finished goods 1,700,000 Work in Process Labour 1/10/X6 9,000 Advertising 12,000 Work in Process Expense 1/101x6 6,000 Audit fee 3,000 Finished Goods 30/9/X7 25,000 Discount expense 6,000 Raw Materials 30/9/X7 16,000 Discount revenue 4,000 3 Work in Process Material 30/9/X7 7,000 Cartage Outwards 5.000 Work in Process Labour 30/9/X7 5,000 Insurance 4,000 5 Work in Process Expense 30/9/X7 3,000 Light and power (Office) 12,000 General expenses 23,000 7 Adjusting Entries Rates 9,000 Accrued Salaries (Office) Salaries (Office) 100,000 9 Accrued Salaries (Factory) 11,000 Salaries (Factory) 200.000 Prepaid Insurance 1,000 Sales commission 40,000 Tax expense 50,000 2 Depreciation on Machinery 12,000 Required 3 Insurance (Office) 25% (a) Prepare a manufacturing statement for the year Insurance (Factory) 75% (b) Prepare an income statement for the year Rates (Office) 25% Rates (Factory 75% 1 2 B 3 700 D 4 un Required: (a) Prepare a manufacturing statement fortheyear. (6) Prepare an income statement fortheyear. QUESTION 7 Service department cost allocation (18 marks) Direct, step and reciprocal methods of overhead allocation A firm has two service departments, S, and S, and two production departments, P, and P2. The primary allocation of indirect manufacturing expenses is as follows: S. S2 P P2 Total. $15 000 $13 000 $30 000 $40 000 $98 000 The percentage allocation of service centre costs is: Si S2 PL P2 Total Si 0 10 50 40 100 S2 20 0 40 40 100 Re-allocate the service centre costs to the production departments by (a) the direct method (b) the step method (c) the reciprocal services method