Question 1 The following lists of balances were extracted from the books of Bonolo who is a furniture manufacturer as at 31 December 2019. Factory machinery at cost Pula 160 000 Accumulated depreciation on machinery 32 000 Sales 480 000 Raw material purchased 120 000 Inventory at 1January 2019 Raw material 40 000 Work in progress Finished goods Trade receivables( debtors) Carriage of raw material Direct factory wages 16 000 30 000 60 000 4.000 89 000 Light and power 10 000 Indirect factory wages 16.000 Rent and insurance 22 600 Administrative staff salaries 67 000 Salesmen salaries 32 000 Capital 189 000 12.000 Other direct expenses Addition information a) Factory machinery is to be depreciated by 20 percent on a reducing balance method b) Inventory as at 31 December 2019 were as follows: Raw material Finished goods 25 000 Work in progress 14 000 26 000 Light and power, rent and insurance to be allocated between factory and office in the ratio 60% and 40% respectively. d) Insurance was prepaid by P600. Required to prepare the following accounts: a) A manufacturing account showing the cost of raw material consumed, prime cost and total cost of production b) An income statement for the period ended 31 December 2019