PERFECT MANUFACTURING COMPANY Unadjusted Trial Balance as at 31 December 2019 Accounts Name Debit RM Credit RM 20,000 21,000 35,000 17,000 9,000 3,000 91.000 32,500 Cash Accounts Receivables Finished goods inventory 31/12/2019 Work in process 31/12/2019 Raw materials inventory 31/12/2019 Prepaid insurance Machine and Equipment Accumulated depreciation Machine and Equipment Accounts Payables Bills payables Capital Loan from Bank Sales Raw material purchase Direct labour cost Indirect labour cost Factory supplies expense Factory utilities expense Factory rent expense 19,000 30,000 43,600 33,000 1,080,000 405,000 244,000 63,000 34,000 24,500 42.000 Administrative entertainment expense Factory maintenance expense Sales expense Administrative and office expense Sales commission expense Interest expense TOTAL 19,000 30,000 37,000 54,000 68,600 21,000 1,238,100 1.238.100 Additional information: 1. On 1st of Mac 2019, the firm had paid RM3,000 for one year insurance policy. The adjustment for current year insurance expense has not been recorded. 2. The list of inventories on 1st of January 2019 were as follows: Raw material RM 7,500 Work in process RM 19,000 Finished goods RM 40,000 3. The related expenses which are not yet recorded are direct labour cost of RM6,000 and indirect labour cost of RM1,500. 4. Machine and equipment costing RM31,500 are for office administration while another RM59,500 is for manufacturing purpose. All machine and equipment are depreciated using the straight line method for 7 years with no residual value. The depreciation expense for the current year has not been recorded. Required: a) Prepare the Statement of Manufacturing for the year ended 31 December 2020. b) Prepare the Income Statement for the year ended 31 December 2020