(b) The Financial Controller of Usaha Jaya Sdn Bhd has resigned in early December 2015. Due to this, an inexperienced assistant accountant has to prepare the following income statement for the Month of December, 2015. Usaha Jaya Sdn Bhd Income Satement For the month ended, 31 December 2015 Sales (net) Less: (RM) (RM) 670,000 Operating Expenses Raw Materials Purchased 200,000 Salary Expenses 150,000 Selling and Administrative Expenses 137,000 Depreciation on Equipment 95,000 Indirect Labour Cost Factory Rent Net Loss 20,000 80000 682,000 (12,000) Prior to December 2015, Usaha Jaya Sdn Bhd had been profitable every month. The entity's CEO is concerned about the accuracy of the above income statement. As a friend of the CEO, you have been asked to review the income statement and make necessary corrections. After examining the manufacturing data, you have acquired additional information as follow: Inventory balances at the beginning and end of December 2015 were: Raw materials Work in process Finished goods December 1 (RM) 18,000 25,000 40,000 December 31 (RM) 33,000 21,000 62,000 RM110,000 of the selling and administrative expenses was for selling expenses and the remaining was for administrative expenses. 80% of salary expenses is direct labour cost. 2/3 of administrative expense is for factory. 55% of depreciation on equipment is for administration expense. (i) Prepare a statement of cost of goods manufactured for the year ended, 31 December 2015. (ii) Prepare an income statement for December 31, 2015. (12 marks) (10 marks)