(a)[8]
Prepare the manufacturing account for the year ended 31 December 2019.
(b)[7]
Prepare the income statement for the year ended 31 December 2019.
(c)[2]
Calculate the amount at which finished goods are shown in inventory at 31 December 2019.
(d)[5]
Explain, using accounting concepts, how unrealised profit on finished goods is handled in both the income statement and the statement of financial position.
(e)[3]
Advise the directors of T Limited on whether they should continue to base the transfer price on the price paid to an outside supplier. Support your answer with reasons.