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Question (35 Marks) The following balances were obtained from the books of Book Den Namibia (PTY) Ltd as at 31 March 2019; Direct Materials Purchases 500 000 15 000 Indirect Materials Purchased for Cash Direct Labour Costs Incurred 250 000 Indirect Production Labour 25 000 20 000 Rent Expenses: Building Complex Water & Electricity 60 000 Plant depreciation 50 000 30 000 Insurance expenses: Building Complex Sales 1 600 000 Distribution Expenses 30 000 Administrative Expenses 10 000 20 000 Railage on Purchases of Direct Materials Direct Materials Returned Back to Suppliers Inventory balances on 31 March: 5000 2018 2019 400 000 200 000 Direct Materials Indirect Materials 10000 6000 225 000 125 000 Work in Progress Finished goods 500 000 241 800 Additional information: 1) Factory occupies half of the building complex 2) Finished goods are transferred to sales department at cost plus 25% 3) A royalty fee of 1% of sales is payable at the patent owner 4) All direct material purchases are on credit, while indirect materials are purchased on a cash basis 5) Book Den Namibia (PTY) Ltd Only transact with its customers on credit. Page 13 of 25 FACULTY OF COMMERCE, MANAGEMENT AND LAW You are required to: 1. Prepare the following general ledger accounts for Book Den Namibia (PTY) Ltd for the year ended 31 March 2019; a) Raw Materials Inventory Accounts (6 Marks) b) Factory Overheads Expense Account (7 Marks) c) Work in Progress Account (8 Marks) d) Finished Goods Account (4 Marks) e) Trading Account and (3 Marks) f) Profit & Loss Account (7 Marks) [TOTAL MARKS 100]