PLEASE ANSWER ALL 3 PARTS OF THE PAPER. THANKS.

REMEMBER, THE FIRST QUESTION MUST BE SOLVED AS PER RULE OF CHEGG: THANKS

Q.1. MUST BE SOLVED Numerical Problems: Note: Answer the following questions: (SLO 4,5) (24 Marks) 1. The following information has been taken from the accounting records of Muscat manufacturing company for year December, 2019: Particulars Raw materials inventory, January 1 Raw materials inventory, December 31 Selling expenses Utilities, factory Direct labor cost Depreciation factory Purchase of raw materials Sales Insurance, factory Supplies, factory Administrative expenses Indirect labor Maintenance, factory Work in progress inventory, January 1 Work in progress inventory, December 31 Finished goods inventory, January 1 Finished goods inventory, December 31 Amount $250,000 50,000 50,000 50,000 100,000 120,000 2,000,000 5,000,000 50,000 20,000 50,000 20,000 100,000 100,000 50,000 200,000 100,000 Management wants these date organized in a better format so that financial statements can be prepared for the year. Required: 1. Prepare a schedule of cost of goods manufactured. 2. Prepare the cost of goods sold 3. Prepare a pro forma income statement for December, 2019. (SLO 3,4,5) (3 Marks) Question 2 - Short Theory Questions: Note: Answer the following questions: 1. What is variable cost and fixed cost?? 2. What are the Dysfunctional incentives? 3. What is financial budget? (SLO 4,5) True or False Questions: (3 Marks) Note: Answer all (Write in box True or False") Question 3 1. A budget is a qualitative expression of a plan of action that imposes the formal structure of an organization ( 2. The most forward-looking budget is the strategic plan which sets the overall goals and objectives of the organization ) ) 3. An activity-based flexible budget is based on budgeted costs for different activity and related cost driver