The following is an extract from the accounting records of Unite Manufacturers, a sole trader, for the year ended 31 December 2006. Inventory balances 1 January 2006 P 31 December 2006 P 90 000 45 900 28 000 43 000 65 000 88 400 Transactions for the year ended 31 December 2006 Raw material purchased 52 000 1 000 Railage paid on purchases of raw material Returns of raw material 7 500 Labour cost 15 500 500 Water and electricity Repairs to factory machinery 1 000 Depreciation (machinery) 20 000 Credit sales 150 000 Salaries and wages (administrative personnel) 12 000 Additional information a) The total raw material purchased includes indirect material of P10 000 b) of the total labour cost, 35% is for factory manager's salary, the rest is direct labour Raw material Work in progress Finished goods cost. c) 1t is estimated that 80% of the water and electricity is used in the factory d) 20% of the depreciation is for the office machinery the balance is for the factory You are required to prepare the following a) The manufacturing cost statement for Unite Manufacturers for the year ended 31 December 2006 (12 marks) b) The income statement for the same business for the year ended 31 December 2006 (8 marks) Clearly show the following: cost of raw material consumed, Prime cost, Cost of goods completed, Gross profit and net profit.