James Limited manufactures bicycle parts but also purchases some parts for resale. The following information is available for year ended 2021 December 31: Inventory at 2021 January 01 S Raw materials 63 000 Work-in-progress 17 000 16 480 Finished goods Sales of finished goods 922 500 Purchases of finished goods 61 700 Purchases of raw materials 358 100 Carriage of finished goods 2400 Carriage of raw materials 1400 Machine operators' wages 153 500 Factory supervisor's salary 48 100 Administrative and sales wages 62 100 228 000 Factory machinery at cost Office equipment at cost 180 000 Provision for depreciation of factory machinery 45 600 Provision for depreciation of office equipment 27 000 Rent 76 500 Light and heat 39 800 Question 3 James Limited manufactures bicycle parts but also purchases some parts for resale. The following information is available for year ended 2021 December 31: Inventory at 2021 January 01 S Raw materials 63 000 Work-in-progress 17 000 16 480 Finished goods Sales of finished goods 922 500 Purchases of finished goods 61 700 Purchases of raw materials 358 100 Carriage of finished goods 2400 Carriage of raw materials 1400 Machine operators' wages 153 500 Factory supervisor's salary 48 100 Administrative and sales wages 62 100 228 000 Factory machinery at cost Office equipment at cost 180 000 Provision for depreciation of factory machinery 45 600 Provision for depreciation of office equipment 27 000 Rent 76 500 Light and heat 39 800 Additional information: Inventory at 2021 December 31: $ Raw materials 62 800 Work-in-progress 15 100 Finished goods 36 500 i. At 2021 December 31, rent of $3 500 was owing and prepaid light and heat amounted to $1 700. ii. Rent, light and heat are apportioned as follows: factory 60%, administration 40%. ii. Factory machinery is to be depreciated using the straight-line method at 10%. iv. Office equipment is to be depreciated by the reducing balance method at 15%. A. Prepare the Manufacturing Account for year ended 2021 December 31. (11 marks) Prepare the Income Statement for year ended 2021 December 31. B. (9 marks) (Total 20 marks)