(a)[4]
Explain two reasons that factory profit is added in an income statement.
(b(i))[3]
Calculate for the year ended 31 December 2019: the correct figure for the production cost of manufactured goods.
(b(ii))[1]
Calculate for the year ended 31 December 2019: the correct amount of factory profit.
(c(i))[3]
Prepare for the year ended 31 December 2019: the corrected unrealised profit provision account.
(c(ii))[9]
Prepare for the year ended 31 December 2019: the revised income statement.
(d)[5]
Advise the directors on whether they ought to stop accounting for factory profit. Justify your answer.