Question 3 (20 Marks) The following information is available for Shilongo Leather Manufacturers, a manufacturer of leather products, for the year ended 28 February 2021: Balances Direct material Work in progress Finished products Rent paid in advance-factory 01/03/2020 N$ 28/02/2021 N$ 14 000 6 000 19 000 40 000 1000 2 700 1000 700 Water& electricity in arrears-factory Transaction occurred during the year- all cash, all factory: Water & electricity-factory 20 000 Indirect wages-factory 10 000 Material purchased cash (direct) 60 000 Depreciation factory 8 000 Indirect material purchased cash 14 000 Direct labour Indirect material used Cost of goods completed Cost of sales Other overheads paid Insurance-factory Rent-factory Direct material used 12 000 75 000 206 000 200 000 12 000 14 000 28 000 55 000 Sales 400 000 Additional information 1. Overheads are allocated at 200% of direct material cost 2. Rent in arrears at the end of 2022 was N$800 3. Water and electricity in arrears at the end of 2022 was N$600 4. Overheads applied are recovered against the cost of sales. REQUIRED: 1) Prepare the Manufacturing cost statement for the year ended 28 February 2021. (14 marks) 2) Prepare the statement of profit and loss and other comprehensive income to calculate gross profit. (6 marks)