Sugar Buns, a pastry manufacturer, has presented you with the following financial information for the year ending December 31, 2020: $ $ Capital 446,500 Drawings 14,400 Provision for bad debts 5,200 Utilities 27,600 Sales 1,399,000 Direct expenses 16,600 Building 920,000 Motor vehicle 316,000 Machinery and equipment 360,000 Provision for depreciation: Building 140,000 Motor vehicle 98,000 Machinery and equipment 76,000 Carriage inwards on indirect materials 8,600 Wages 286,000 Loan 250,000 Discounts allowed 18,400 Bank 55,800 Insurance 36,500 Office expenses 37,500 Provision for unrealised profits 8,600 Debtors 84,000 Creditors 44,000 Opening stock of raw materials 31,000 Opening stock of indirect material 28,600 Opening stock of work in progress 21,300 Opening stock of finished goods 49,000 Factory general expenses 29,500 Commission received 27,700 Returns inwards 8,700 Discounts received on raw materials 10,300 Returns outwards on raw materials 16,100 Purchases of raw material 177,000 Purchases of indirect material 34,000 Telephone charges 72,500 2,577,200 2,577,200 4 Additional information: 1. Stock on hand at the end of the year was as follows: Raw material $32,400 Indirect material $12,800 Work in progress $33,100 Finished goods $27,200 2. Adjustments are to be made to the following items of expenses and revenue: Utilities Prepaid by $8,100 Telephone Prepaid by $3,700 Insurance Owing by $5,600 Commission Prepaid by $9,200 3. Fixed assets are to be depreciated as follows: Building 12% reducing balance Motor vehicle 15% reducing balance Machinery and equipment 8% straight line 4. Of the total wages amount, 35% is attributable to direct labour, 25% is attributable to indirect labour, and 40% is attributable to administrative staff. 5. Expenses are to be apportioned as follows: Factory Office Utilities 60% 40% Insurance 80% 20% Telephone 35% 65% Depreciation - building 90% 10% Depreciation - machinery & equipment 75% 25% Depreciation - motor vehicle 20% 80% 3. The good produced are to be marked up by 25% before transfer. 4. Provision for bad debts is to be revised to 20% of debtors. REQUIRED: Using the information provided, prepare Sugar Buns manufacturing account, statement of profit or loss, and statement of financial position for the period. The manufacturing account and the statement of profit or loss should be shown separately.