(a)[8]
Prepare the manufacturing account for the year to 31 December 2020.
(b)[3]
Prepare the provision for unrealised profit account for the year to 31 December 2020.
(c)[5]
Explain how unrealised profit is treated in G Limited’s statement of financial position at 31 December 2020. Your response should refer to relevant accounting concepts.
(d)[4]
Prepare the trading section of the income statement for the year to 31 December 2020, showing the gross profit from each of luxury sofas and standard sofas separately.
(e)[5]
Advise the directors on which option should be selected. Justify your answer and back it up with calculations.