Question 3 (25 Marks) The following information was obtained from Born free MANUFACTURERS on 31 December 2021. Balances on 1 January 2021 N$ Capital 250 000 Drawings 8 400 Factory buildings 200 000 Manufacturing equipment 193 000 Accumulated depreciation: Manufacturing equipment 75 000 Debtors control 24 830 Allowance for credit losses 1 300 Bank (dr) 7 500 Creditors control 9 890 Unrealized profit in finished goods 4 213 Summary of transactions for the year ended 31 Dec 2021 N$ Purchase of raw materials 97 600 Sale of finished products 452 000 Cash payments N$ Delivery charges on raw material purchases 8 790 Direct labor 102 300 Indirect labor 12 650 Maintenance (Manufacturing equipment) 5 100 Municipal fees (manufacturing) 4 800 Electricity: Factory 2 600 Electricity: Offices 940 Consumables on hand 2 180 Salaries: administrative 14 800 Selling expenses 20 300 Administrative costs 22 700 Credit losses 1 050 Additional information: 1. During the year, 17 500 units were manufactured. 2. Inventory Opening Closing Raw materials 17 600 23 400 Work in process 13 400 16 200 Finished goods 32 300 26 340 Consumables 4 340 1 320 3. An additional N$430 must be written off as credit losses. 4. Depreciation on manufacturing equipment is provided at 15% per annum on the cost price thereof. 5. Finished goods are transferred to the sales department at cost plus 15%. YOU ARE REQUIRED TO: 1. Prepare the manufacturing cost statement of Bornfree Manufacturers for the year ended 31 December 2021. (15 Marks) 2. Prepare the statement of profit or loss and other comprehensive income of Bornfree Manufacturers for the year ended 31 December 2021. (10 Marks) Question 3 (5 Marks) The following balances were extracted from the books of Max and Mike CC. DR CR Property, plant and equipment 500 000 Inventory 150 000 Accounts receivable 100 000 Accounts payable 50 000 Loan from members 20 000 Bank 200 000 Members contribution 300 000 Undrawn profit 100 000 Long-term loan 80 000 750 000 750 000 Additional information: 1. The amount of N$20 000 on 31 March 2021 relates to undrawn profit of the previous year, this was settled during the current year. 2. The members decided to distribute to themselves N$29 000, this is still outstanding (not yet paid) at the year end. 3. The members had decided to a contribution of N$80 000 during the year.