(a)[2]
Explain what is meant by 'indirect manufacturing costs'.
(b)[7]
Prepare the manufacturing account for the year ending 31 December 2021.
(c)[11]
Prepare the revised income statement for the year ending 31 December 2021. Use the next page for your workings. Your statement must display the gross profit for each of standard furniture and luxury furniture separately. It must also present expenses under 'total administrative expenses' and 'total selling and distribution costs'.
(d)[5]
Assess the effect on the profitability of T Limited for the year ended 31 December 2021 of manufacturing luxury furniture. Support your answer with appropriate calculations.