QUESTION ONE (Based on Manufacturing Accounts)

The information below was extracted from the books of Brook Ltd as at 31^st October 2023

	Sh. 000	Sh. 000
Ordinary share capital		500,000
Share premium		200,000
Plant and Machinery (Net)	360,000
Furniture and Fittings	160,000
Inventory of raw materials as at 1st November 2022	160,000
Inventory of Finished Goods as at 1st November 2022	120,000
Work in Progress 1st November 2022	90,000
Sales		1,363,000
Trade creditors		202,500
Accruals		35,000
Carriage inwards on raw materials	18,000
Return outwards		10,000
Buildings	350,000
Factory wages	320,000
Purchases of raw materials	450,000
General factory expenses	68,000
Lighting	40,000
Sales commission	27,260
General administrative expenses	92,240
Insurance	48,000
Bank charges	12,500
Trade debtors	262,500
Cash in hand and in bank	34,200
Retained earnings as at 1st November 2022		365,000
Discounts allowed	18,300
Royalties paid	45,000
	2,676,000	2,676,000

Additional Information:

1. Inventory balances as a t 31^st October 2023 were made up of the following:

	Sh. 000
Raw materials	120,000
Work in Progress	93,000

1. The company sells finished goods on a first in first out system (FIFO). On November 1^st, 2022, the company had an opening inventory of finished goods of 200,000 units. In the year ended 31^st October 2023, it produced 2,000,000 units and sold 1,840,000 units.
2. Building cost Sh. 500,000,000 and are depreciated at the rate of 10% per annum based on cost. Plant and machinery are depreciated at the rate of 20% per annum on reducing balance basis. Furniture and fittings were purchased for Sh. 200,000,000 as at 1^st November 2022 and are depreciated on a straight line basis on the cost over a five year period.
3. The following expenses should be apportioned as shown:

	Factory	Administration
Lighting	75%	25%
Insurance	62.5%	37.5%
Depreciation on buildings	80%	20%

1. The company pays royalties per unit produced.
2. A dividend of 16% was proposed for the year ended 31^st October 2023.

Required:

1. Manufacturing Account for the year ended 31^st October 2023
2. Statement of comprehensive income for the year ended 31^st October 2023
3. Statement of financial position as of 31^st October 2023