KAMUTI'S TRIAL BALANCE AS AT 31 DECEMBER, 2010 Description Inventory of raw material is 1.1.2010 Inventory of finished goods 1.1.2010 Work in progress 1.1.2010 Wages (direct K180.000factory indirect K 145,000) Royalties Carriage inwards (on raw materials) Purchases of raw materials Productive machinery (cost K280,000) Administration computers (cost K 20,000) General factory expenses Lighting Factory power Administration salaries Sales reps salaries Commission on sales Rent Insurance General administration expenses Bank charges Discounts allowed Carriage outwards Sales Account receivable and account pavable Bank Cash Drawings Capital as at 1.1.2010 IK CRIK DR 21,000 38,900 | 13,500 | 325,000 17.000 | 3.500 370.000 230,000 | 12,000 | 31,000 7.500 1 13.700 44,000 30,000 | 11.500 | 12,000 14.200 113.400 2300 14,800 5,900 1.000.000 142.300 64.000 16.800 1,500 60,000 1 357.800 1.421,800 1.421.800 Additional information: 31.12.2010 1. Inventory of raw materials K24,000; inventory of finished goods K40,000; WIP K15,000. 2. Lighting, rent and insurance are to be apportioned: factory administration 3. Depreciation on productive machinery and administration computers at 10% per annum on cost. Required: a) Prepare a manufacturing for the year ending 31 Dec 2010 and explain the purpose of preparing a manufacturing account