QUESTION 4 (20 marks) The following information pertains to Bees Five Traders, a manufacturing entity, for the year ended 31 December 20.20. Extract of balances at 31 December 20.20 Inventory balances 1 January 20.20: Raw materials (direct) 10 500 Work-in-progress 18 750 Finished goods 35 000 Raw materials purchased (direct and indirect) Indirect materials issued to the factory for production Raw materials issued to the factory for production Wages and salaries (factory employees) Depreciation: Manufacturing equipment Office equipment Insurance: Factory Offices Rent paid: Factory Offices Water and electricity: Factory 47 400 700 28 400 45 200 5 350 2 500 6.000 2.000 3 500 1 800 650 Yearly sales Additional information Office 200 73 860 1. Inventory at 31 December 20.20: Raw materials R17 900 Work-in-progress R15 500 R20 200 Finished goods 2. All indirect materials purchased were issued to the manufacturing process during the current period Page 10 of 15