The following balances were extracted from the books of ABC manufacturers of Tomato

paste on 31st December 2022

GH¢ GH¢

Capital 33,480
Inventory at 1/1/2022
Raw materials 7,317
Finished goods 4,131
Work in progress 2,700
Purchases of raw materials 128,331
Carriage on raw materials 304
Returns on purchase of raw materials 601
Factory power 2,457
Factory lights and heat 1,077
Office light and heats 772
Printing and stationery 683
Postage and telephone 551
Office salaries 5,346
Factory salaries 5,400
Rent and rates 810
Insurance 3,092
Display expenses 3,607
Advertising 459
Factory wages 28,728
Discount 378 405
Sales 192,470
Provision for unrealized profit (1/1/2022) 608
Land and building 13,500
Factory Equipment and machinery 12,150 608
Office equipment 3,240 324
Drawings 1,851
Trade receivables and payables 621 710
Cash in hand 1,485
sales returns 216
229,206 229,206

You are given the following additional information

i. The owner of ABC Manufacturers took raw materials and finished goods costing
GH¢5,000 and GH¢8,000 respectively for his personal use

ii. Factory Wages outstanding at 31 December 2022 amounted to GH¢ 2,200 while
Display expenses includes a prepayment of GH¢ 1,200

iii. Finished goods manufactured during the period are transferred from the factory at a
mark-up of 20%
iv. Inventories at 31st December 2022:

Raw materials GH¢ 1,553

Finished Goods GH¢ 90,000
Closing WIP GH¢ 34,688
v. The following expenses are apportioned as follows:

Factory Office
Rent and rates 70% 30%
Insurance 50% 50%
vi. The company depreciation policy are as follows;

Factory Equipment and machinery 10% straight line method

Office equipment 25% reducing balance method

You are required to:

Prepare a manufacturing income statement for the year ended 31st December 2022