During the year ended 30 June 2016, Beautiful Bottles Pty Ltd incurred the following costs in connection with its production activities.

Raw materials purchases Factory electricity Indirect labour Direct labour Depreciation on manufacturing equipment Plant rent Supplies used in production Repairs to manufacturing equipment

$390 000 71 000 90 000 82 750 65 000 56 000 23 000 26 000

The beginning and ending inventory values were:

	Beginning inventory	ending inventory
Raw materials Work in process Finished goods	$28 400  52 400  86 500	$23 600  62 000  75 000

Required

A. Calculate the relationship between factory overhead costs and direct labour cost.

B. Prepare a cost of goods manufactured statement for the year ended 30 June 2016.

C. Prepare closing entries using the Manufacturing Summary account.

D. Prepare the general journal entry to close the Manufacturing Summary account.