U1 Booklet 3 Manufacturing Accounts - Solutions.xlsx - 1.68

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1.68 Unnamed: 1 Unnamed: 2 Unnamed: 3 Unnamed: 4 SOLUTION
Brown PLC
Manufacturing Account for the year ended 31 March Year 8
£ £
Raw Materials Cost
Opening Inventory 7500
Add Purchases 130000
Less Purchases Returns 2500 127500
135000
Add Carriage In 0
135000
Less Closing Inventory 9000
COST OF RAW MATERIALS CONSUMED 126000
Add Direct Costs
Manufacturing Wages (40000+2000) 42000 42000
PRIME COST OF MANUACTURE 168000
Add Factory Overheads
Heat and Light 22000
Admin Expenses (33000-500) 32500
Manager's Salary 30000
Fuel 20000
Depn - Machinery (10%x85000) 8500 113000
281000
Add Inventory - Work in Progress at Start 6250
287250
Less Inventory - Work in Progress at End 2000
FACTORY COST OF PRODUCTION 285250