QUESTION 1 The following balances appeared in the accounting records of MK Manufacturers Limited at 31 December 2018 Inventory 1/1/2018: Raw materials Raw materials purchased during the year Direct labour costs P Factory rental Electricity 60% for manufacturing Depreciation: Manufacturing plant m Delivery vehicles Co ot Indirect manufacturing labour Work in progress 1/1/2018 Inventory of finished goods 1/1/2018 m Sales for the year cost Sales and administration expenses CgSt Inventory 31/12/2018: Raw materials Work in progress Finished goods (31/12/2018) M) You are required to: Draw up the manufacturing and trading sections of the income statement for the year ended 31 December 2018, clearly indicating the following: (a) Prime cost (b) Total cost of goods manufactured (c) Cost of sales (d) Gross profit