The following information is an extract of a year end trial balance of MR Manufacturing Sdn Bhd as at 31 December 2016.

MR Manufacturing Sdn Bhd

Trial Balance

As at 31 December 2016

	Debit (RM)	Credit (RM)
Cash	26,000
Accounts Receivable	49,000
Finished Goods Inventory, 1 January 2016	24,000
Work In Process Inventory, 1 January 2016	10,200
Raw Materials Inventory, 1 January 2016	9,400
Equipment	300,000
Accumulated Depreciation-Equipment		60,000
Accounts Payable		130,000
Capital		80,000
Sales		990,000
Direct Labour	124,000
Raw Material Purchases	305,000
Indirect Labour	106,500
Factory Supplies Expenses	24,000
Maintenance Expenses of Factory Equipment	80,500
Utility Expenses	82,000
Rent Expenses	57,000
Depreciation Expenses	12,000
Insurance Expenses	22,400
Selling Expenses	28,000
Total	1,260,000	1,260,000

Additional Information:

1. Inventories as at 31 December 2016:

RM

Raw materials	2,500
Work in process	10,000
Finished goods	7,500

2. Utility, rent and depreciation expenses for factory and office are allocated as below:

	Factory	Office
Utility Expenses	80%	20%
Rent Expenses	80%	20%
Depreciation Expenses	90%	10%
Insurance Expenses	90%	10%

REQUIRED:

Prepare the Statement of Cost of Goods Manufactured for the year ended 31 December 2016 for MR Manufacturing. (Show the total of prime cost item).

Discuss the differences between financial and managerial accounting.