TEST YOUR UNDERSTANDING 5. The following information for the period ended December 31, 2000 was taken from the books of TR Plastics, producers of plastic chairs Raw materials: Opening stock Purchases Curringe Purchases returns Closing stock Work in progress: January 1, 2000 December 31, 2000 Production wages Direct factory expenses Factory Overheads: Rent Rates Insurance Salaries Electricity Depreciation of machinery Stock of Finished Goods on Dec. 31, 2000 20 250 73000 6100 13 000 15 000 7 000 10 000 21 500 2 100 8.000 3.250 4 000 13500 5.000 6 150 30 000 Factory overhead costs on Rent Insurance and Salaries are apportioned to factory, selling and distribution, and administration in the ratio of 4:5:1. The number of plastic chairs completed and sold during the year was 6 000 at $30 each. Prepare the Manufacturing, Trading and Profit and Loss Accounts of TR Plastics for the period ended December 31, 2000 to show: Cost of raw materials used (ii) Prime cost (iii) Factory overheads (iv) Cost of production (v) Selling and distribution expenses (vi) General administration expenses (vii) Net Profit (b) Calculate: The production cost per unit of plastic chairs completed and sold. (ii) The total cost per unit to produce and sell plastic chairs. Show working in detail