20 Marks QUESTION 2 PART A An analysis of the accounts of KAZ Manufacturing Pty Ltd reveals the following manufacturing cost data for the month ended 30 June 2019. Beginning Ending $ 14000 10 000 16 000 $ 22 200 18000 12 000 Inventories: Raw materials Work in process Finished goods Costs incurred: Raw materials purchases Direct labour Manufacturing overhead Specific overhead costs: Indirect labour Factory insurance Machinery depreciation Machinery repairs Factory utilities Miscellaneous factory costs 128 000 100 000 60 000 31 200 8000 8000 3600 6 200 3 000 Required: Prepare the cost of goods manufactured statement for the month ended 30 June 2019. Show the presentation of the ending inventories on the 30 June 2019 Balance Sheet extract. PART B Required: Calculate the relationship between overhead and direct labour costs. Using that relationship, calculate the labour and overhead included in the ending inventories of work in process inventory & and finished goods ending inventory. PART A CAZ MANUFACTURING PTY LTD Cost of Goods Manufactured Statement For the Month Ended 30 June 2019. Work in process inventory, June 1 Direct materials Beginning raw materials Purchases Ending raw materials Direct materials used Direct labour Manufacturing overhead Indirect labour Factory insurance Machinery depreciation Machinery repairs Factory utilities Miscellaneous factory costs Total manufacturing overhead Total manufacturing costs Total work in process Ending work in process Cost of goods manufactured CAZ MANUFACTURING PTY LTD Balance Sheet (Extract) June 30, 2019 Current assets Inventories Raw materials Work in process Finished goods PART B Factory overhead and direct labour cost relationship: Factory overhead costs = Direct labour costs Labour and overhead included in ending inventories: Work in process ending inventory = Finished goods ending inventory =