QUESTION 2 Duc Manufacturing Ltd had the following account balances at the end of 2019 financial year. Balance Finished Goods-1 January 2019 Work in Process-1 January 2019 Raw Materials1- January 2019 Prepaid Factory Rent Insurance Expense-Office Freight-in Office Supplies on hand Factory Rent Expense Sales Direct Labour Raw Materials Purchases Office Supplies Expense Indirect Labour Factory Supplies Depreciation Expense-Office Vehicles Electricity and Gas-Factory Raw material purchase return & allowances Factory Insurance Sales Commissions Office Salaries Depreciation Expense-Machinery Interest Expense $125,000 33,200 7,500 60,000 5,000 12,500 2,500 35,000 1,750,000 113,000 325,520 1,500 75,300 12,650 10,000 82,150 23,370 11,500 72,700 42,000 135,000 10,000 Additional information relating to the company is as follows: 1. The inventories as of 31 December 2019 were: Raw materials $ 24.150 Work in process $ 37,500 Finished goods $172,500 2. Expenses incurred as of end of the year but not yet recorded were: direct labour $17,000 and office salaries, $2,300. 3. On 1 September 2019 the company paid $60,000 for the next 12 months factory rent and recorded this amount in the Prepaid Factory Rent Account. 4. At the end of the year the office supplies on hand available was $500 Required: Prepare a cost of goods manufactured statement for 31 December 2019. (40 marks)