FINANCIAL ACCOUNTING

The following balances as at 31 December 2022 have been extracted from the books of Keys manufacturing Ltd.

	$
Stock at January 1, 2022:
Raw materials	7,000
Work-In-Progress	5,000
Finished goods	6,900
Purchases of raw materials	38,000
Direct labour	28,000
Rent & rates	35,000
Electricity	15,000
Postages & stationery	2,000
Administrative staff salary	19,380
Sales	192,000
Plant & Machinery at cost	30,000
Motor vehicles at cost	16,000
Provision for Depreciation:
Plant & Machinery	12,000
Motor vehicles	4,000
Creditors	5,500
Debtors	28,000
Drawings	11,500
Bank	16,600
Capital	48,000
Provision for unrealized profit	1,380
Advertising	4,500

Additional Information:

Stock at 31 December 2022 were as follows:

Raw materials $ 9,000

Work in progress $ 8,000

Finished goods $10,350

55% of rent and rates relates to the office.

60% of electricity relates to the factory.

Factory cost is transferred to trading at a profit of 25%

Depreciate plant and machinery at the rate of 10% per annum on the reducing balance method and motor vehicles at 25% per annum on cost

Direct labour accrued at December 31,2020 amounted to $3,000 and rent and rates prepaid was $2,000

Required:

Prepare a manufacturing, income statement for the year ended December 31, 2022

Prepare a statement of financial position as at December 31, 2022