Reference no: EM133228139

The following details were given for COLLIE Manufacturing Limited for the year ending 31 December 20XX.

Direct material inventory, 1 Jan 20XX $5,000

Direct material inventory, 31 Dec 20XX $10,000

Direct material purchase $168,000

Work in progress, 1 Jan 20XX $23,000

Work in progress, 31 Dec 20XX $55,000

Finished goods, 1 Jan 20XX $33,000

Finished goods, 31 Dec 20XX $25,000

Production workers' salaries $220,000

Office worker's salaries $50,000

Salesmen's commission $40,000

Production supervisors' salaries $20,000

Factory rent $250,000

Office rent $70,000

Shop rent $50,000

Factory utilities $10,000

Office utilities $6,000

Shop utilities $8,000

Depreciation of production machines $43,000

Depreciation of office equipment $7,000

Depreciation of delivery vans $18,000

Interest expense $6,000

Sales revenue $1,500,000

Required:

a) Prepare the Manufacturing Statement for the year.

b) Explain the differences between product cost and period cost.