Question 3 Zack and Mack Manufacturing Enterprise presents the following list of balances as at 2021 July 31: Inventory at 2020 August 01 Raw materials Finished goods Work in progress Purchase of raw materials Carriage cost on raw materials Direct factory wages Indirect factory wages Maintenance and repairs Promotional expenses 120 000 369 900 338 100 1 950 000 105 000 1 221 000 459 000 203 500 50 000 Electricity Sales Plant and machinery at cost Provision for depreciation on plant and machinery Accounts receivables Cash in hand Accounts payables Capital Additional information: i. Stocks at 2021 July 31: A. 1. Raw materials 2. Finished goods 3. Work in progress $105 000 $519 060 $282 600 ii. Depreciation is calculated on plant and machinery at 10% of cost. 401 100 9 000 000 4 260 000 360 000 150 000 100 000 300 000 67.600 ACCT:201 iii. Each overhead cost is apportioned on the following basis: a. b. Factory: maintenance and repairs 60% Electricity 66 2/3% iv. General administration: a. Maintenance and repairs 40% b. Electricity expenses 33 1/3% Prepare the Manufacturing, Trading and Profit and Loss Account for Zack and Mack for period ending 2021 July 31. Clearly show: i. Cost of raw materials ii. Prime cost iii. Cost of production iv. Selling and distribution v. General administrative expenses vi. Net profit (16 marks) B. Use an example to distinguish between manufacturing and retailing. (4 marks)