Question 2: Manufacturing Statement and Income Statement (20 marks in total)

Lake Ltd.s accounting department provided following financial information:

Depreciation Expense - Factory Equipment	$ 90,000
Direct Labour	$ 1,284,000
Raw Material Inventory (1st July, 2016)	$ 183,000
Raw Material Inventory (30th June, 2017)	$ 186,000
Factory Rent	$ 152,820
Finished Goods (1st July, 2016)	$ 264,000
Finished Goods (30th June, 2017)	$ 345,000
Indirect Labour	$ 75,000
Indirect Materials	$ 52,500
Sales Revenue	$ 6,751,500
Administration Expenses	$ 600,000
Selling & Distribution Expenses	$ 1,200,000
Purchase of Raw Material	$ 1,200,360
Freight In	$ 90,000
Work in Process (1st July, 2016)	$ 60,600
Work in Process (30th June, 2017)	$ 57,330

Required: prepare a statement of Cost of Goods Manufactured and an Income Statement for Lake Ltd. for the year ended 30^th June 2017. You can prepare the statements in an Excel spreadsheet then paste into Word.