Idayah Limited is a manufacturing company. The following balances were extracted from its records on 31st December 2014.
Stock on 01/01/2014 Le
Raw materials——————-56,000
Work-in-progress—————60,000
Finished goods—————–80,000
Purchases of raw materials-150,000
Carriage of raw materials——7500
Manufacturing wages paid—16,500
Factory wages accrued——–4,000
Direct factory expenses——11,000
Fuel for factory expenses—15,400
Depreciation of factory equipment—12,000
Sales of finished goods——500,000
Carriage expenses————-7,600
General office goods———-3,800
Office Salaries——————19,200
Stock: 31/12/2014
Raw materials—————–40,000
Work-in-progress ————-64,000
Finished goods—————-72,000
You are required to prepare manufacturing, Trading, and Profit and Account for the year ended 31st December 2014
Explanation
Idayah Limited
Manufacturing, Trading, and Profit and Account for the year ended 31st December 2014
Le Le
Raw material value of goods transferred 2251,240
Opening stock 56,000
Add: purchases 150,000
Carriage inwards 7,500 157,000
213,500
Less: closing stock 40,000
173,000
+manufacturing wages 16,500
Add accruals 4,000 20,000
Direct expenses 11,400
prime cost 205,400
+factory overhead
Fuel 15,000
Dep. of equipment 12,000 27,000
232,400
Add opening WIP 60,000
292,000
Less closing WIP 64,000
factory cost of prod 228,400
Manufaturing prft c/d 22,840
251,240 251,240
| Finished goods $ opening stock 80,000 +value of gds transfered 251,240 331,240 Less closing stock 72,000 259,240 Gross profit 240,760 500,000 carriage outwards 7,600 General office expenses 3,800 Office expense 19,200 Net profit 233,000 263,600 |
$ Sales 500,000 500,000 Manufacturig profit b/d 22,840 Gross profit b/d 240,760 263,600 |