Cahaya Company is a manufacturer of kids' toys. An accountant assistant who is inexperieced has prepared the following income statement for the month of August 2020 RM675,000 Cahaya Company Income Statement For the month ended 31st August 2020 Sales (net) Minus: Operating expense Raw material purchase Direct labour cost Advertising expense Sales and administrative salary Factory rent Depreciation of sales equipment Depreciation of factory equipment Indirect labour cost Utility expense Insurance expense Net loss 220,000 160,000 75,000 70,000 60,000 50,000 35,000 20,000 10,000 5.000 205.000 (30.000 Prior to the month of August 2020, the company has been making a profit each month Therefore, the company director questioned the accuracy of the prepared income statement, You are asked to review the income statement and make the correction where necessary. After analyzing the manufacturing data, the following additional information are found 1. The inventory balance on early and end of August 2020 were 1 August 31 August Raw material RM19,500 RM30,000 Work in process 25,000 21,000 Finished goods 40,000 59,000 Only 50% of the utility expense and 70% of the insurance expense are related to factory operation, and the balance have to be charged to sales and administrative activity. Raw material Work in process Finished goods 1 August RM19,500 25,000 40,000 31 August RM30,000 21,000 59,000 Only 50% of the utility expense and 70% of the insurance expense are related to factory operation, and the balance have to be charged to sales and administrative activity. Required: a) Prepare the Schedule of Cost of Goods Manufactured for the month of August 2020. b) Prepare the correct Income Statement for the month of August 2020