a.Cost of Goods Manufactured Statement for Hennessey Ltd for the period ended 30 June 2020.

b.Income Statement for Hennessey Ltd for the year ended 30 June 2020.

QUESTION 2 Hennessey Ltd has provided the following data for the year ending 30 June 2020: Balances in the ledger at 30 June 2020 included: S Finished Goods Inventory (1 July 2019) 126 000 Direct Materials Inventory (1 July 2019) 81 000 Indirect Materials Inventory (1 July 2019) 21 000 Work in process Inventory (1 July 2019) 19 350 Accrued direct wages 4 500 Depreciation on factory plant 7 500 Transactions during the year ending 30 June 2020 Sales 810 000 Purchases direct materials 442 500 Returns of direct materials 7 500 Freight inwards - Direct materials 4 500 Direct wages paid 148 500 Supervisor's salary 24 000 Indirect materials purchased 39 000 Factory rates 14 755 Other factory expenses 66 840 Additional information Physical stocktake at 30 June 2020: Direct material inventory on hand 38 650 Finished goods inventory on hand 127 650 Indirect material inventory on hand 16 800 Work in process inventory on hand 20 550 Required; a. Prepare a Cost of Goods Manufactured Statement for Hennessey Ltd for the period ended 30 June 2020. b. Prepare the Income Statement for Hennessey Ltd for the year ended 30 June 2020.a) HENNESSEY LTD Cost of Goods Manufactured Statement For the Year Ended 31 December 2020 $ S S Work in process inventory, July 1 Direct materials Opening raw materials Net Purchases Freight inwards Closing raw materials Direct materials used Direct labour Direct wages incurred Manufacturing overhead Indirect materials Opening indirect materials Purchases Closing indirect materials Indirect materials used Supervisor's salary Factory rates Depreciation factory plant Other factory expenses Total manufacturing overhead Total manufacturing costs Closing work in process inventory Cost of goods manufactured b) HENNESSEY LTD Income Statement For the Year Ended 31 December 2020 S S Sales Less: Cost of goods sold Opening inventory finished goods Cost of goods manufactured Less: Closing inventory finished goods Gross profit