(a)[8]
Prepare the provision for unrealised profit account for the years ended 31 December 2020 and 2021.
(b)[9]
Complete the table below. Identify which amounts linked to factory profit were entered in AZ Limited’s income statement for the year ended 31 December 2021. State both the figures and where they appear in the income statement.
(c)[2]
Name two costs that could be part of a manufacturer’s cost of production but would not form part of prime cost.
(d)[6]
Discuss whether the factory profit rates used by AZ Limited are appropriate.