Alphanso Hendricks used to operate a merchandising business in St. Mary, Jamaica. Some years ago, he decided to start manufacturing the goods that he sold in order to achieve cost efficiency. On June 30, 2016 you extracted the following Trial Balance from the books of Alfonso Hendricks.

Details/Accounts	Dr $	Cr $
Accounts payable		10,000,000
Finished goods Inventory, July 1, 2015	20,000,000
Rent and insurance	1,680,000
Carriage outwards	2,400,000
Motor vehicles	7,500,000
Provision for depreciation motor vehicles		1,500,000
Production workers salary	16,000,000
Furniture, etc.	5,000,000
Cash	15,000,000
Direct expenses	4,000,000
Net sales		124,000,000
Capital		57,280,000
Indirect factory expenses	4,000,000
Work in progress, July 1, 2015	8,000,000
Electricity	6,000,000
Purchases of direct raw materials	40,000,000
Administrative expenses	12,000,000
Drawings	3,000,000
Provision for unrealized profit		2,000,000
Direct raw materials, July 1, 2015	10,000,000
Accounts receivable	14,000,000
Carriage inwards for direct raw materials	7,000,000
Machinery	24,000,000
Accumulated depreciation machinery	-------------	4,800,000
Total	199,580,000	199,580,000

Additional information:

1. On June 30, 2016 an amount of $100,000 was outstanding for electricity, while $80,000 pertaining to insurance related to July 1, 2017.
2. Alphanso Hendricks adds 10% mark up to his cost of goods manufactured.
3. A provision for bad debts is to be created equaling to 2% of debtors.
4. Rent and insurance is shared 3:2 between the factory and the office; while 75% of the electricity is used by the factory.
5. Closing inventories on June 30, 2016 were: Direct raw materials $9,000,000; work-in-progress $9,800,000; and finished goods $15,400,000.
6. Depreciation is to be provided for as follows: furniture and fittings 15% straight line; plant and machinery 10% reducing balance; motor vehicles 20% reducing balance.
7. The motor vehicles are used equally between the office and the factory.

Required:

1. A Manufacturing, Trading and Profit and Loss Account for the period ending June 30, 2016. (25 marks)

2. A Balance Sheet as at June 30, 2016 (15 marks)