The following information is available from the books of Regan Manufacturing Company Limited

$

Stock on January 2017

Raw materials 40,000

Work in progress nil

Finished goods 48,000

Stock on December 2017

Raw materials 30,000

Work in progress 30,000

Finished goods 55,000

Purchases of raw materials 300,000

Direct wages 100,000

Freight in 3,000

Accrued wages 12,000

Direct expenses 54,500

Returns of raw materials 7,000

Materials stolen 2,500

Discount on raw materials 3,000

Salaries (Factory, Office, Salesmen; 5:3:2 respectively) 60,000

Rent (Factory, Office, Salesmen; 3:3:4 respectively) 40,000

Depreciation of plant 3,000

Factory power 12,000

Other factory expenses 8,000

Insurance of plant 10,000

Legal fees 5,000

Other office expenses 3,000

Installation of AC in the office 1,500

Renovation of office premises 2,500

Exhibitions 1,200

Promotions 1,800

Advertising in newspaper 1,500

Delivery van expenses 2,000

Depreciation of delivery van 1,500

Sales 800,000

Required:

a) Prepare a production statement (8 marks)

b) Prepare a profit statement (6 marks)

c) What is the difference between a production cost statement, a profit statement and a total cost statement?