Polatl Corporation uses annual costing period in its cost accounting. That is, it calculates and records the cost of products produced at the end of the year. Data for the year 2019 are given below. 1. Gross wages accrued, including employer's share of social security, are t3,000,000 for factory workers (5/6 direct, 1/6 indirect) and 400,000 for sales people. 2. Raw material inventory at the end of the year is 100 tons. Beginning inventory was 150 tons (+600,000). 1,200 tons of raw material costing +6,000,000 (excluding 18% VAT) was purchased during the year. The company uses LIFO based on periodic inventory method. All purchases are for cash. 3. Construction of factory building and mounting of machines were completed in 2017. The building cost $1,000,000 and the machines cost 8,000,000. Annual depreciation rates are 2% for the building and 20% for the machines. Double declining balance method is used for both 4. Sales are made through a retail store rented on May 1 of previous year (2018) by paying two year's rent of 96,000. At the end of current year (2019) it is observed that rent of 2019 and 2020 still remain in prepaid (deferred) expense accounts (short-and long-term). 5. According to the bank statement received at the end of the year, accrued interest for 2019 on the short-term loan is t80,000. All interest charges on this loan will be paid at the maturity date next year. 6. The accumulated severance pay of factory employees was 200,000 at the end of 2018. It is calculated as 500,000 for the end of 2019. 7. During 2019 623,600,000 cash sales were made. This amount includes 18% VAT. 8. Beginning and ending inventories of work-in-process and finished goods were as follows: Work in Process Finished Goods December 31, 2018 140.000 160.000 December 31, 2019 70,000 $10.000 Required: a. Show all journal entries according to 7/A b. Prepare cost of goods sold statement and income statement