The following balances as at 31 December 19_5 have been extracted from the books of William Speed, a small manufacturer:

Additional information:
(1) Stocks at 31 December 19_5 were as follows:

(2) The factory output is transferred to the trading account at factory cost plus 25% for factory profit. The finished goods stock is valued on the basis of amounts transferred to the debit of the trading account.
(3) Depreciation is provided annually at the following percentages of the original cost of fixed assets held at the end of each financial year:
Plant and machinery 10%
Motor vehicles 25%
(4) Amounts accrued due at 31 December 19_5 for direct labour amounted to £3 000, and rent and rates prepaid at 31 December 19_5 to £2 000.
Required:
Prepare a manufacturing, trading and profit and loss account for the year ended 31 December 19_5 and a balance sheet as at that date.
Note: The prime cost and total factory cost should be clearly shown.

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Stocks at 1 January 19 5: Raw materials 7.000 Work in progress 5.000 Finished goods 6.900 Purchases of raw materials 38.000 Direct labour 28 000 Factory overheads: Variable 16.000 Fixed 9.000 Administrative expenses: Rent and rates Heat and light Stationery and postages Staff salaries 19.000 6.000 2.000 19 380 Sales 192 000 Plant and machinery: At cost 30 000 Provision for depreciation 12 000 Motor vehicles:. At cost 16.000 Provision for depreciation 4 000 Creditors Debtors Drawings Balance at Bank 5 500 28 000 11 500 16 600 Capital at 1 January 19_5 Motor vehicle running costs 48 000 Provision for unrealised profit at 1 January 19_5 1 380 4.500