From the following information, draw up a manufacturing account and the trading account section of the income statement for the six months ending 30 September 2013. You should show clearly:

(a) Cost of raw materials consumed.

(b) Prime cost of production.

(c) Production cost of finished goods.

(d) Gross profit on sales.

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Inventory, 1 April 2013: Raw materials Work-in-progress Finished goods Inventory, 30 September 2013: Raw materials Work-in-progress Finished goods Purchases of raw materials Carriage on raw materials Direct wages Factory general expenses Office salaries Depreciation of office furniture Carriage outwards Advertising Bad debts Sales less returns Sales of scrap Discounts received Depreciation of factory equipment Rent and business rates (factory three-quarters, office one-quarter) E 2,990 3,900 15,300 4,200 3,600 17,700 15,630 126 48,648 7,048 22,200 420 191 1,472 200 112,410 1,317 188 4,200 2,800