Mullett Ltd are a manufacturing company producing two separate products Bits and Togs. The following balances have been extracted from their accounting records on 31 August 19_1:

The following information concerning the financial year ended 31 August 19_1 is also given:
(1) Prepayments at 31 August 19_1:
General office expenses £2 100 (2) Accruals at 31 August 19_1:

(3) Stocks at 31 August 19_1:

(4) Indirect labour includes £3 000 incurred on laying the foundations of a new factory extension and £500 on repainting the offices.
(5) Rent and rates are to be divided between the factory and offices in the ratio of 4:1.
(6) Canteen costs and indirect labour are to be divided between Bits and Togs in the proportion of the direct wages paid.
(7) Factory rent and rates and factory heat and light are to be divided between Bits and Togs in the ratio of 3:2.
(8) General factory expenses are to be divided between Bits and Togs in proportion to turnover.
(9) Finished goods manufactured during the year are transferred from the factory to the finished goods warehouse at the manufacturing cost of production plus 10 per cent.

Required:

(a) The manufacturing account for the year ended 31 August 19_1 showing clearly the factory cost and manufacturing profit for each product.

(b) The trading account for the year ended 31 August 19_1 showing clearly the gross profit for each product.

(c) The profit and loss account for the year ended 31 August 19_1.

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Sales: Bits 240 000 Togs 180 000 Purchases of raw materials: Bits 63 000 Togs 42 000 Direct wages: Bits 60 000 Togs 20 000 Royalties: Togs 14.000 General factory expenses 21 000 Factory canteen costs 8 400