Question 3 (39 Marks) The following details of transactions and balances were extracted from the records of Grootfontein Textile Limited a manufacturing company as at 31 December 2020. Balances Inventory of finished goods (01/01/2020 1 000 000 Inventory of raw material (01/01/2020) 140 000 Work in progress (01/01/2020) 50 000 Transactions Raw material purchases 900 000 Freight on raw materials 50 000 Freight on sales 72 984 Returns on raw material 30 000 Wages 1 600 000 Municipal utilities 200 000 Depreciation: Machinery 45 000 Furniture 15 000 Maintenance- Machinery 36 590 Insurance (factory only) 55 334 Rent 300 000 Balances Inventory of finished goods (31/12/2020) 340 000 Units Inventory of raw materials (31/12/2020) 139 000 Work in progress (31/12/2020) 75 424 Additional information: 1. An account of N$ 14 000 for raw materials purchased was erroneously debited to the wages account. 2. 80% of wages in non-manufacturing of which 35% of the balance is indirect labour. 3. 50% of furniture is used in the manufacturing plant. 4. Machinery is solely used in the manufacturing plant. 5. 1 200 000 units were manufactured for the current year. 6. The total area of the buildings on which municipal utilities and rent costs are allocated is 4 000m of which 90% of the space is occupied by the factory buildings. 7. Finished goods are transferred at cost plus 20% to the sales department. Page 21 of 22 8. An account of N$ 37 334 was received on 03 January 2021 for municipal utilities. 9. Provision for unrealized profit in finished goods as at 31 December 2020 should still be provisioned for. 10. The companys financial year end is 31 December. You are required to: 1. Prepare the manufacturing cost statement of Grootfontein manufacturing limited as at 31 December 2020. (27 marks) 2. Prepare the following ledger account: 2.1 Raw materials (6 marks) 2.2 Work-in-progress (6 marks)