Solve in your notebook Question One The following balances were extracted from the books of Ugo Ltd for the year ended 31 December 2022 Inventory @ 1/1/22 N N Raw Material 151,300 Selling expenses 37,500 Work in progress 20,800 Administrative expenses 30,400 Finished goods 69,000 Sales. 667,100 Purchases of Raw Materials 260,520 Inventory @ 31/12/22 Carriage inwards 12,400 Raw Material 160,120 Direct factory wages 140,650 Work in progress 44,600 Indirect factory wages Factory heat, light and power Factory supplies 33,750 Finished goods 68,200 87,500 24,100 Factory Insurance Depreciation of plant and machinery Depreciation of office equipment 13.100 30,400 6,000 From the information given above, you are required to prepare a schedule for the year showing i. Prime Cost ii. Total Factory Overhead iii. Cost of goods produced iv. Cost of goods sold v. Net profit Question Two Excel Limited is a manufacturer of energy saving bulbs. To manufacture the finished product one unit of component "KYIV is required. Quarterly requirement of component "KYIV is 18,000 units, the cost being N300 per unit. Other relevant details for the year 2020 are: Cost of placing an order: N2,250 Carrying cost of inventory: 12% of purchase cost Maximum Lead time: 20 days Minimum Lead time: 8 days Maximum Consumption: 400 units per day Minimum Consumption: 200 units per day You are required to explain and calculate: i. EOQ ii. Re-order level iii. Minimum inventory level iv. Maximum inventory level v. Optimal number of purchase order per year