Question 1 Zental a manufacturing company produces the following balances from its books at 31 December 2021. RM Inventory at 1 January 2021 Raw material Work in progress Finished goods Loose tools Purchase of raw material Purchase of finished goods Purchase returns of finished goods Purchase of Loose Tools Direct expenses Returns inwards Carriage inwards Rates Utilities expenses Direct wages Indirect wages Telephone Factory repairs Insurances Salaries Factory Office Sales Plant and Machinery (at cost) Provision for depreciation of plant and machinery Bad debts expenses Sales Furniture and equipment at cost for Factory Office Provision for depreciation of furniture and equipment Factory Office 17,450 8,330 12,110 1,200 228,740 38,900 1.310 2,670 8,280 1,215 4,080 5,250 3,270 187,240 14,320 890 2.215 1,420 38,000 24,000 27,435 160,000 64,000 325 766,560 42,000 48,000 8,400 9,600 450 650 The following additional information is available: a) Closing inventory at 31 December 2021 is as follows: Raw Material RM 6,325 Work in progress 6,105 Finished goods 15,225 Loose tools 900 b) Following expenses are as follows: At 31 December 2021 Prepayments Accruals RM RM Rates Insurance 220 Direct wages 1220 Telephone 190 70 Utilities 210 c) At 31 December 2021, depreciation is to be provided as follows Plant and machinery -20% per annum on cost Furniture and Equipment -10% per annum on reducing balance method d) Expenses are to be apportioned to the factory as follows: Rates 4/5 Insurance 3/4 Telephone 2/3 Utilities e) Two-third of carriage inwards is incurred for purchase of raw material c) 3/4 Required: Calculate each of the following costs for 2021: a) Total prime costs. b) Total manufacturing overhead costs. c) Total product costs. (4 marks) (7 marks) (4 marks) (Total 15 marks)