On 31 July 2021 the following information was provided by KA Limited, a manufacturer of garden tools. Inventory 1 August 2020 Raw materials $5820 Work in progress $1750 Finished goods $12360 Purchases Raw materials $34200 Finished goods $3900 Carriage on purchases Raw materials $410 Finished goods $80 Direct wages $67200 Indirect factory wages $24000 Factory machinery at cost $47000 Provision for depreciation of factory machinery $11000 Factory general overheads $16400 Rates $5300 Inventory 31 July 2021 Raw materials $6030 Work in progress $2780 Finished goods $10340 Revenue $223000 Additional information 1 On 31 July 2021 rates, $500, were prepaid. Rates are to be apportioned 75% factory, 25% office. 2 On 31 July 2021 factory general overheads, $230, were accrued. 3 Factory machinery is to be depreciated at 20% per annum using the reducing balance method. DH Limited, a customer of KA Limited, has been declared bankrupt. A debt of $350 was owing to KA Limited. This is to be written off. KA Limited maintains a provision for doubtful debts.