Sara owns a clothing factory. She sells the clothing to a small number of local shops. She allows 30 days credit. At 30 September 2023, Sara's ledger account balances included the following. Inventory at 1 October 2022 Raw materials $4875 Work in progress $8125 Finished goods $12890 Purchases of raw materials $56400 Wages Machine operators $43300 Factory supervisor $25000 Delivery vehicle driver $14250 Rates and insurance $29600 General factory expenses $9650 Factory machinery – at cost $80000 Factory machinery – provision for depreciation $35000 Trade receivables $27000 Cash at bank $1050 Additional information 1. Inventory at 30 September 2023 Raw material $5110 Work in progress $7365 Finished goods $13725 2. At 30 September 2023 general factory expenses of $335 were unpaid. 3. Insurance of $8000 had been paid for the year July 2023 to June 2024. 4. Rates and insurance are to be apportioned equally between the factory and the office. 5. Factory machinery is depreciated at 25% per annum using the reducing balance method. REQUIRED

1. (a)Prepare Sara's manufacturing account for the year ended 30 September 2023.[11]
2. (b)Prepare the current assets section of Sara's statement of financial position at 30 September 2023.[3]
3. (c)Sara's factory supervisor is very efficient at running the factory. REQUIRED State which accounting principle Sara is complying with by not recording any value for this efficiency in her financial statements.[1]
4. (d)Sara has now been asked to supply a local drama school with theatrical costumes. The drama school would place an order with Sara each month and would require 60 days credit. REQUIRED Advise Sara whether she should start supplying the drama school with costumes. Justify your answer by providing advantages and disadvantages of supplying the costumes.[5]