QUESTION TWO (15 MARKS) Ombese owns and manages a small manufacturing business. The following balances have been extracted from her books of accounts at 31 December 2021. Purchase of Raw materials Fuel and Light Administration salaries Factory wages Carriage outwards Rent and business rates Sales Return inwards Dr. Cr. 280,000 21,000 17,000 59,000 4,000 21,000 482,000 7,000 General office expenses 9,000 Repairs to plant and machinery 9,000 Inventory at 1 January 2021: Raw materials 21,000 Work-in-Progress Finished goods 14,000 23,000 Sundry accounts payable Capital account Freehold premises Plant and Machinery Accounts receivable Cost in Hand 37,000 457,000 410,000 80,000 20,000 Accumulated provision for depreciation on Plant and Machinery 8,000 11,000 984,000 984,000 Additional information: 1. Inventory in hand at 31 December 2021: Raw materials Sh 25,000 Work-in-progress Sh 11,000 Finished goods Sh 26,000 2. Depreciation of 10% on Plant and Machinery using the Straight line method 3. 80% of fuel and light and 75% of rent and rates to be charged to manufacturing 4. Allowance for doubtful debts: 5% of sundry accounts receivable 5. Sh 4,000 outstanding for Fuel and Light 6. Rent and business rates paid in Advanced sh 5,000 7. Market value of finished goods sh 382,000 Required: i. Manufacturing account and Statement of profit or loss for the year marks) ending 31 December 2021 (14 ii. Statement of financial position as at 31 December 2021. (6 marks) virtualcampus.kcau.ac.ke