The following balances were extracted from the books of Spiron Manufacturing on 30 April 2015. Factory machinery (cost) Office fixtures (cost) Provision for depreciation Factory machinery Office fixtures Purchases of raw materials Inventory at 1 May 2014 Raw materials Work in progress Finished goods Revenue Purchases of finished goods Factory managers' salaries Office wages and salaries Direct factory expenses Indirect factory expenses Factory wages Rent Insurance Marketing expenses Distribution costs Financial expenses Provision for doubtful debts Trade receivables Trade payables Bank Capital Drawings $ 80000 20000 60000 8000 85000 10150 15000 21200 310000 19000 32000 41900 5600 9800 47000 10000 8000 12400 9850 7650 400 23900 14350 7700 Dr 90000 16600 Additional information at 30 April 2015 1 Inventory was valued as follows: Raw materials Work in progress Finished goods $ 12750 16200 18700 2 Insurance and rent are to be apportioned 80% to the factory and 20% to the office. 3 Financial expenses owing were $850. 4 Marketing expenses of $600 were prepaid. 5 Depreciation is to be charged as follows: (i) Factory machinery at 25% per annum using the diminishing (reducing) balance method (ii) Office fixtures at 15% using the straight-line method. 6 A debt of $1900 was considered irrecoverable. A provision for doubtful debts is to be maintained at 5%. REQUIRED

1. (a)Prepare the manufacturing account for the year ended 30 April 2015. Show clearly the prime cost and the cost of production. Spiron Manufacturing Manufacturing Account for the year ended 30 April 2015 $ $[13]
2. (b)Prepare the income statement for the year ended 30 April 2015. Income Statement for the year ended 30 April 2015 $ $[15]
3. (c)Prepare the statement of financial position at 30 April 2015. Statement of Financial Position at 30 April 2015 $ $ $[12]