The following balances as at 31st

December 2022 have been extracted from the books of William Speed, a

manufacturer:

K'000

Stock at 1st January 2022:

Raw

materials 7 000

Work

in progress 5 000

Finished

goods 6 900

Purchase of raw materials 38 000

Direct labour 28 000

Factory overheads:

Variable

16 000

Fixed

9 000

Administrative expenses:

Rent

and rates 19 000

Heat

and light 6 000 Stationery

and postage 2 000

Staff

salaries 19 380

Sales 192

000

Plant and machinery:

At

cost 30 000

Provisions

for depreciation 12 000

Motor vehicles (for sales deliveries):

At cost 16 000

Provisions

for depreciation 4 000

Creditors 5 500

Debtors 28 000

Drawings 11 500

Balance at bank (Dr) 16 600

Capital at 1st January 2022 48 000

Provision for unrealised profit at 1st Additional information:

1. Motor vehicle running cost 4500

Stocks at 31st December 2022, were

as follows:

K'000

Raw materials 9 000

Work in progress 8 000

Finished goods 10 350

2.

The factory output is transferred to the

trading account at factory cost plus 25% for factory profit. The finished goods stock is valued

on the

basis of amounts transferred to the debit of the trading account.

3.

Depreciation is provided annually at the

following percentages of the original costs of fixed assets held at the end of

each financial year:

Plant and machinery 10%

Motor vehicles 25% Amounts accrued due on 31st

December 2022 for direct labour amounted to K3 000 000 and rent and rates

prepaid at 31st December 2022 amounted to K2 000 000.

Required:

Prepare Trial Balance,