The financial year end of Mendip Limited is 30 June. At 30 June 2017, the following balances are available:

(1) The inventory at 30 June 2017 was: raw materials £22,000; finished goods £35,600.
(2) Salaries include £6,700 for directors' fees.
(3) Depreciation is to be charged at 10% on cost of plant and machinery.

Required:
Prepare a manufacturing account and statement of profit or loss for the year ending 30 June 2017.

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Freehold land and buildings at cost 143,000 Plant and machinery at cost 105,000 Accumulated depreciation on plant and machinery 23,000 Purchase of raw materials 130,100 Sales 317,500 Factory rates 3,000 Selling expenses Factory heat and light Accounts receivable Accounts payable Wages (including 15,700 for supervision) Direct factory expenses Office salaries and general expenses 6,500 37,200 30,900 63,000 9,100 11,000 43,000 Bank General reserve 24,500 30,000 Retained profits 18,000 Inventory 1 July 2016: Raw materials 20,000 Finished goods 38,000 Dividends paid: Preference shares 840 Ordinary shares 20,000