Section C-Question 3: Clinton has the following balances as at 31 July 2021. Cr. Fabian: Trial Balance as at 31 July 2021 Dr. () Inventory of raw materials 1 August 2021 80,000 Inventory of finished goods 1 August 2021 128,000 Work-in-progress 1 August 2021 64.000 Wages (direct 880,000; factory indirect 400,000) 1,280,000 Purchases of raw materials 1,440,000 Productive machinery (cost 500,000) 640,000 Administration computers (cost 40,000) 56,000 General factory expenses 72,000 Lighting 36,800 Factory power 60,800 Administration salaries 112,000 Sales Reps' salaries 64,000 Commission on sales 24,000 Rent 40,000 Insurance 32,000 General administration expenses 24,000 Discounts allowed 12,800 Carriage outwards 11,200 Bank charges 6,400 Sales Receivables 1,280,000 Payables Bank 352,000 Cash 40,000 Drawings 160,000 Capital as at 1 August 2021 6,016,000 4,768,000 128,000 1,120,000 6,016,000 Notes as at 31 July 2021: a) Inventory of raw materials 88,000; inventory of finished goods 140,800; work-in- progress 70,400 b) Lighting, rent and insurance are to be apportioned: factory 75%, administration 25%. C) Depreciation on productive machinery and administration computers is to be charged at 10% per annum on cost. Required: a) Prepare Fabian's Manufacturing Account for the year ended 31 July 2021. (10 Marks) b) Prepare the company's Income Statement (Profit and Loss Account) for the year ended 31 July 2021. Gross and net profit margins must be shown. (10 Marks) The profit and loss sections of the Income Statement should be separated to show: Administration Expenses Selling & Distribution Expenses Financial Charges Note: You ARE NOT required to prepare a statement of Financial Position (Balance Sheet). Total: 20 Marks END OF QUESTION C3