LTD Company, a manufacturing firm, had the following inventory balances at the beginning and end of the current year. Inventory Account: $ Work-in-process inventory, 1 January 2023 576,000 Work-in-process inventory, 31 December 2023 572,000 Raw materials inventory, 1 January 2023 300,000 Raw materials inventory, 31 December 2023 316,000 Finished goods inventory, 1 January 2023 740,000 Finished goods inventory, 31 December 2023 776,000 During the year, the company purchased $1,240,000 of raw materials and spent $1,940,000 on direct labour. The actual machine hours incurred was 63,700 hours. Manufacturing overhead costs were as followed: $ Indirect Material 52,000 Indirect Labour 128,000 Depreciation on Plant and Equipment 500,000 Electricity 132,000 Other 152,000 LTC Company allocates manufacturing cost to work in process on the basis of machine hours. The budgeted manufacturing overhead for the year was $960,000 and the budgeted machine hours were 64,000 hours. Sales revenue was $5,280,000 for the year. Sales and administrative expenses amounted to $548,000.

Create a schedule of costs of goods manufactured for year end 31 December 2023

Create a schedule of costs of goods sold for year end 31 December 2023.

Create the income statement for year ended 31 December 2023. Ignore income tax.

Explain the difference between prime and conversion cost

Explain the difference between a product and a non-manufacturing cost.