The following trial balance was extracted from the books of JTO Ltd, a manufacturer of textile materials, for the year ended 31 December, 2018. '000' '000' Share capital 1,096,800 Inventory 1 January, 2018 Raw materials 50,400 Work in progress 33,600 Rolls of finished textile materials 55,200 Plant & machinery at cost 700,000 Delivery truck at cost 60000 Accumulated depreciation 1 January, 2018: Plant & machinery 19,200 Delivery truck 15,000 Bank balance 6,000 Purchase of raw materials 915,800 Utilities 50,400 Salaries 40,800 Factory labour 141,600 Trade show exhibition expenses 3,400 Rent & rates 120,000 Sales 1,030,000 General office expenses 21,600 Trade receivables & payables 63.000 88.800 Total 2.255,800 2.255.800 Additional information: 1. Rent and rates had been paid for the period 1 January, 2018 to 31 March, 2019 while utilities Shs 4.8 million was outstanding by the year end. Rent and rates accrue evenly throughout the year. 2. Cotton bales bought at Shs 25.6 million (included in purchases) were stained by smoke during a fire outbreak and subsequently sold for Shs 10 million. This entire transaction has not been recorded in the books of account. 3. Included in factory labour is Shs 21.6 million in wages advanced to 10 factory workers during the year. This amount had not been recovered by the year end. 5/6 of the factory labour relates to direct costs and the balance relates to factory overheads. The company apportions other costs as follows: Cost Factory Office & Selling & administration distribution Utilities 0.7 ? 0.15 Rent and rates 60% 20% 20% Salaries 10% 70% 20% Inventories as at 31 December, 2018 were as follows: 4. 5. Raw materials 30,000 Work in progress 13,200 Rolls of finished textile materials 25,200 The company's depreciation policy is: Asset Rate Plant & machinery 10% on cost Delivery truck 25% on reducing balance Required: Prepare for JTO Ltd for the year ended 31 December, 2018 a statement of: (a) manufacturing cost. (b) profit or loss