Q4: The Blue Star Manufacturing Company submits the following information on December 31, 2019. Raw material inventory January 1 88,000 Finished goods inventory, January 1 100,000 1200,000 120,000 42,000 480,000 Material Purchases Raw material inventory, December 31 Legal expenses Direct labor Indirect labor Depreciation-Factory building Postage expenses Depreciation-Office building (50% to office) Supplies and Indirect material used Power, Heat, Light Factory manager's salary Advertising Fire insurance Miscellaneous Manufacturing cost Work in Process, January 1 Work In Process, December 31 Finished goods inventory, December 31 240,000 80,000 465 60,000 160,000 3,000 7400 2450 800 900 160,000 192,000 72,000 ? Factory overhead is applied at the rate of 125% of direct labor cost During the year 4080 units were manufactured of which 4000 units were sold at a unit price of Rs. 730 each. Other expenses for the year were: Selling expenses 5% of sales Administrative expenses 2% of sales Required: i) Prepare Cost of goods manufactured and sold statement. Prepare an income statement at year ended December, 31 2019. (5) (5) Q5: How under applied and over applied FOH is adjusted in cost of goods sold at normal. (5)