The following additional information is also provided:

Closing stock

Raw material $65,000,$ Indirect Material $35,000.$ Work in Progress $21125,$ Finished

Goods $93,500$

Wages owing by $60,000,$ insurance prepaid by $10,000$

Depreciation is to be charges on the non current assets as follows

Property plant and equipment $5\%$ on the reducing balance Motor vehicle $10\%$ on the

straight line basis. All depreciation charges are to be applied equally in the factory and

the office

The provision for bad debts is to be adjusted to $10\%$ of the debtors

The commission income is owing by $10,{000}_{?}$ while the rent income is prepaid by

$15,000$

The goods produced are to be marked up by $10\%$ in the factory before being

transferred as finished goods

The wages is to be applied $50\%$ to the office, $30\%$ indirectly to the factory, and $20\%$

directly in the factory

Apportion the insurance and the utilities cost $60\%$ to the factory and the remainder

to the office Required

Prepare the Manufacturing Account and Income Statement for the year ending

December $31,2022$; as well as the Statement of Financial Position as at December $31,$

$2022(55$ marks$)$

Explain the classification of closing stock as used in the manufacturing enterprise

$(10$ marks$)$

Given that the goods produced are to be marked up by a percentage rate before being

transferred as finished goods, briefly explain

a$)$ the accounting treatment for the amount calculated based on the mark up $(5$ marks $)$

b$)$ the accounting implications if the finished goods are not all sold off at the end of

the year $(10$ marks $)$Question One

The Minty Alley is a manufacturer of herbal body wash. The firm has provided the following details for $2022$ :

$\backslash$table$[[$DETAILS$,$Dr$,$Cr$],[$Purchases of Indirect Material,$230,000,],[$Dirent Expenses:,$30,000,],[$Eactory General Expenses,$40,000,],[$Opening Stock of Indirect Materials,$20,000,],[$Loan Interest. Pain,$40,000,],[$Capital$,,850,000],[$Opening stnck of Raw Material,$70,000,],[$Carriage In on Raw Material,$6,500,],[$Commission$.$ Income,,$40,000],[$Rent Income,,$75000],[$Purchases of Raw Material,$640,000,],[$Onening$\_$Stnck of WIP,$22,000,],[$Opening Stock af Finished Goods,$45,000,],[$Wages$,300,000,],[$Insurance:$,50,000,],[$Utilities$,80,000,],[$Property Plant and Fquinment PPE,$950,000,],[$Motor Vehicle,$800,000,],[$Prov for Denn PPE,,$125,000],[$Prov for Denn Motor Vehicle,,$24,000],[$Provision for Unrealized Profit,,$12,000],[$Pmvision foc Bad Debts:,,$8,000],[$Debtors$,65,000,],[$Bank:$,,240,000],[$Creditors$,,95,500],[10\%$ Loan,,$500,000],[$Sales$,,1,500,000],[$Return Inwards,$6,000,],[$Drawings$,30,000,],[$Cash$,55,000,],[3469500,3469500]]$