Question 1 The following list of balances as at 31 July 2019 has been extracted from the books of Keyrin Enterprise who commenced business on 1 August 2018 as a designer and manufacturer of kitchen furniture: Accounts Plant and machinery at cost on 1 August 2018 Motor vehicles at cost on 1 August 2018 Purchase of loose tools Sales Raw materials purchased Direct factory wages Light and power Indirect factory wages Machinery repairs Motor vehicle running expenses Rent and insurances Administrative staff salaries Administrative expenses Sales and distribution staff salaries Capital at 1 August 2018 Trade receivables Trade payables Balance at bank Drawings RM 60,000 30,000 9,000 170,000 43,000 39,000 5,000 8,000 1,600 12,000 11,600 31,000 9,000 13,000 122,000 16,500 11,200 8,500 6,000 Additional information for the year ended 31 July 2019: (a) It is estimated that the plant and machinery will be used in the business for ten years and the motor vehicles used for four years; in both cases it is estimated that the residual value will be nil. The straight line method of providing for depreciation is to be used. (b) Light and power charges accrued due at 31 July 2019 amounted to RM1,000 and insurances prepaid at 31 July 2019 totaled RM800. (c) Inventory was valued at cost at 31 July 2019 as follows: Raw materials RM7,000 Finished goods RM10,000 Work-in-progress RM12,300 (d) Two-thirds of the light and power and rent and insurances costs are to be allocated to the factory costs and one-third to general administration costs. (e) Motor vehicle costs are to be allocated equally to factory costs and administrative costs. (1) Goods manufactured during the year are to be transferred to the trading account at RM95,000 (Transfer price). (9) Loose tools in hand on 31 July 2019 were valued at RM5,000. Required: (2) Prepare a manufacturing account for the year ending 31 July 2019 of Keyrin Enterprise; and (b) Statement of profit or loss for the year ending 31 July 2019 (Internal usage). A