From the following figures prepare a manufacturing account and the trading account section of the income statement so as to show: a) Cost of raw materials used in production. b) Prime cost c)Production cost of finished goods produced d) Cost of goods sold. e) Gross profit.

Inventory at 1 January 2013: Raw Materials : 10,500 Goods in course manufactures (at factory cost) : 2,400 Finished goods: 14,300

Inventory at 31 March 2013 Raw materials: 10,200 Goods in course manufactures (at factory cost) : 2,900 Finished goods: 13,200

Expenditure during the quarter: Purchase of raw Materials: 27,200 Factory wages: Direct: 72,600 Indirect: 13,900 Carriage on Purchase of raw Materials: 700 Rent and business rates of the factory: 1,200 Power: 2,000 Depreciation of machinery: 3,900 Repairs to factory buildings: 1,300 Sundry factory expenses: 900 Sales during the quarter: 160,400