Cahaya Company is a manufacturer of kids' toys. An accountant assistant who is inexperieced has prepared the following income statement for the month of August 2020. Cahaya Company Income Statement For the month ended 31st August 2020 Sales (net) RM675,000 Minus: Operating expense Raw material purchase 220,000 Direct labour cost 160,000 Advertising expense 75,000 Sales and administrative salary 70,000 Factory rent 60,000 Depreciation of sales equipment 50,000 Depreciation of factory equipment 35,000 Indirect labour cost 20.000 Utility expense 10,000 Insurance expense 5.000 705.000 Net loss (30.000 1 Prior to the month of August 2020, the company has been making a profit each month. Therefore, the company director questioned the accuracy of the prepared income statement. You are asked to review the income statement and make the correction where necessary. After analyzing the manufacturing data, the following additional information are found. 1. The inventory balance on early and end of August 2020 were: 1 August 31 August Raw material RM19,500 RM30,000 Work in process 25,000 21,000 Finished goods 40,000 59,000 Only 50% of the utility expense and 70% of the insurance expense are related to factory operation, and the balance have to be charged to sales and administrative activity Required: a) Prepare the Schedule of Cost of Goods Manufactured for the month of August 2020. b) Prepare the correct Income Statement for the month of August 2020