Q1 The following data refer to Nani's Fashions for the current year:

Sales Revenues $475,000 Work in process inventory, 31 December15,000 Work in process inventory, 1 January20,000 Selling and administrative expenses75,000 Income tax expense45,000 Purchase of raw materials90,000 Raw materials inventory, 31 December12,500

Raw material inventory. 1 January20,000 Direct labour100,000 Electricity: plant20,000 Depreciation plant and equipment30,000 Finished goods inventory, 31 December25,000 Finished goods inventory, 1 January10,000

Indirect material5,000 Indirect labour7,500 Other manufacturing overhead40,000

Required: a) Prepare the schedule of cost of goods manufactured for Nani's fashion. (3 marks) b) Prepare the schedule of cost of goods sold for Nani's Fashions and explain the information provided by the schedule of cost of goods sold. (4 marks) c) REQUIRED an income statement for the current year. (3 marks)