Question 4 (24 marks) Otjiwarongo Manufacturer Ltd has the following information related to the reporting period ended 31 December 2019. NS 90 000 780 000 655 000 150 000 75 000 100 000 50 000 Inventory: Raw material - 1 January 2019 Raw material purchased during the year Labour cost Rent Electricity Manufacturing equipment at cost Delivery vehicles at cost Accumulated provision for depreciation ( 1 January 2019): Manufacturing equipment Delivery vehicles Uncompleted goods - 1 January 2019 Inventory of completed goods - 1 January 2019 Sundry sales and administrative expenses Inventory on 31 December 2019: Raw material Uncompleted goods Completed goods Purchases (other inventory) Additional information: 30 000 15 000 33 000 315 000 170 000 120 000 31 500 450 000 100 000 I. ii. ili. iv. v. An amount of N$ 20 000 is erroneously debited against the purchases account (other inventory), instead of raw material. Correct the error. N$ 600 000 is in respect of direct labour costs, whilst the residue is for indirect manufacturing labour. The size of the factory is 250 m . The rent amounts to N$ 400/ m per annum. 60% of the electricity is in respect of manufacturing. Depreciation is determined as follows: > Manufacturing equipment is written off in 10 equal installments. Otjiwarongo Manufacturer Ltd bought the manufacturing equipment 1 January 2016 15% per annum on vehicles according to the reducing balance method You are required to: 1. Prepare the following general ledger accounts for Otjiwarongo Manufacturer Ltd for the year ended 31 December 2019: 1.1 Raw materials inventory account (6 marks) 1.2 Factory overheads expenses account (7 marks) 1.3 Work in progress account (7 marks) 1.4 Finished goods (4 marks)