Tutorial 2 - Manufacturing Account Question 1 Additional information: The following trial balance as at 31 December 2021 was extracted from the books of Hickory Sdn. Bhd.: 1 . The closing inventories as at 31 December 2021 comprised the following: Debit Credit RM RM RM Revenue 455,000 Raw materials 35,000 Inventories as at 1 January 2021: Work-in-progress 12,000 Raw materials 11,000 Finished goods 26,000 Work-in-progress 16.500 Finished goods 25,400 2. Depreciation of non-current assets is based on following methods: Direct wages 12,000 Purchases of raw materials 47.200 Factory building : 5% per annum using straight-line Other direct expenses 12,000 method Indirect labour 15,800 Plant and : 6% per annum using reducing Office utilities expenses 10.600 machinery balance method Office rental 19.000 Office equipment : 8% per annum using reducing Factory building 600,000 balance method Office equipment 58,000 Plant and machinery 150,000 3. It is the company's policy to transfer manufactured goods to finished goods Accumulated depreciation as at 1 January 2021: at cost plus 25% factory profit. Factory building 60,000 Office equipment 28.000 4. Tax expense for the year ended 31 December 2021 amounted to RM12,500. Plant and machinery 35.000 Trade receivables and trade payables 75.000 68,000 Required: Cash at bank 6,500 Tax paid 1,800 (a) Prepare the following accounts and financial statements for Hickory Sdn. Allowance for unrealised profit as at 1 January 2021 5.300 Bhd.: Retained earnings as at 1 January 2021 159,500 Ordinary share capital 250,000 (i) Manufacturing account for the year ended 31 December 2021; 1,060,800 1,060,800 Allowance for unrealised profit account; (HiD) Statement of profit or loss for the year ended 31 December 2021. (b) Explain when and why an allowance for unrealised profit account is prepared