Notes: 1. Stock as at 31 October 2020: direct raw materials $3,000,000; work- in progress $2,000,000; and finished goods $2,645,000. 2. Insurance was to be apportioned 75% to the factory; miscellaneous expenses 2/3 to the factory; electricity 0.20 to the office; while the motor vehicles were used 70% of the time for factory purposes. 3. On December 31, 2012, $150,000 paid for indirect raw materials related to the succeeding financial period, while discount received amounting to $200,000 was not booked to the account. On December 31, 2012, $60,000 was owed for stationery. 4. The Provision for bad and doubtful debts is to be adjusted to 3% of debtors It's the company's policy to add 15% mark up to its cost of production. 5. Depreciation is to be provided for as follows: Motor vehicles 15% reducing balance; Plant and machinery 10% reducing balance; Office furniture 10% straight line. Required: (a) Explain why it is necessary for Jaleel Ltd to prepare a manufacturing account at the end of its financial year. (b) During the year ended 31 October 2020, Jaleel Ltd purchased some finished goods from another manufacturer. Suggest two (2) reasons why Jaleel Ltd purchased these goods rather than manufacture them. (c) Prepare Manufacturing, Trading and Profit and Loss Accounts for the year ending 31 October 2020. (d) Prepare a Balance Sheet as at 31 October 2020. PART B: (a) Use the information in parts (c) \& (d) above to calculate the following ratios: ucconline.ucc.edu.jm Notes: 1. Stock as at 31 October 2020: direct raw materials $3,000,000; work- in progress $2,000,000; and finished goods $2,645,000. 2. Insurance was to be apportioned 75% to the factory; miscellaneous expenses 2/3 to the factory; electricity 0.20 to the office; while the motor vehicles were used 70% of the time for factory purposes. 3. On December 31, 2012, $150,000 paid for indirect raw materials related to the succeeding financial period, while discount received amounting to $200,000 was not booked to the account. On December 31, 2012, $60,000 was owed for stationery. 4. The Provision for bad and doubtful debts is to be adjusted to 3% of debtors It's the company's policy to add 15% mark up to its cost of production. 5. Depreciation is to be provided for as follows: Motor vehicles 15% reducing balance; Plant and machinery 10% reducing balance; Office furniture 10% straight line. Required: (a) Explain why it is necessary for Jaleel Ltd to prepare a manufacturing account at the end of its financial year. (b) During the year ended 31 October 2020, Jaleel Ltd purchased some finished goods from another manufacturer. Suggest two (2) reasons why Jaleel Ltd purchased these goods rather than manufacture them. (c) Prepare Manufacturing, Trading and Profit and Loss Accounts for the year ending 31 October 2020. (d) Prepare a Balance Sheet as at 31 October 2020. PART B: (a) Use the information in parts (c) \& (d) above to calculate the following ratios: ucconline.ucc.edu.jm