| 1.7 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| Bailey PLC | |||||
| Manufacturing Account for the year ended 31 December Year 6 | |||||
| £ | £ | ||||
| Raw Materials Cost | |||||
| Opening Inventory | 7000 | ||||
| Add Purchases | 100000 | ||||
| Less Purchases Returns | 0 | 100000 | |||
| 107000 | |||||
| Add Carriage In | 0 | ||||
| 107000 | |||||
| Less Closing Inventory | 6500 | ||||
| COST OF RAW MATERIALS CONSUMED | 100500 | ||||
| Add Direct Costs | |||||
| Manufacturing Wages | 55000 | 55000 | |||
| PRIME COST OF MANUACTURE | 155500 | ||||
| Add Factory Overheads | |||||
| Indirect Wages | 40000 | ||||
| General Expenses (9000-400) | 8600 | ||||
| Light and Heat | 1400 | ||||
| Indirect Power (3500+900) | 4400 | ||||
| Rent and Rates | 1500 | ||||
| Depn - Machinery (10%x80000) | 8000 | 63900 | |||
| 219400 | |||||
| Add Inventory - Work in Progress at Start | 5000 | ||||
| 224400 | |||||
| Less Inventory - Work in Progress at End | 3000 | ||||
| FACTORY COST OF PRODUCTION | 221400 | ||||
| Bailey PLC | |||||
| Income Statement for the year ended 31 December Year 6 | |||||
| £ | £ | £ | |||
| Sales Revenue | 320000 | ||||
| Less Sales Returns | 0 | ||||
| Net Sales Revenue | 320000 | ||||
| Less Cost of Sales | |||||
| Opening Inventory - FG | 12000 | ||||
| Add Factory Cost of Production | 221400 | ||||
| 233400 | |||||
| Add Purchases - FG | 0 | ||||
| Less Purchases Returns - FG | 0 | 0 | |||
| 233400 | |||||
| Add Carriage In - FG | 0 | ||||
| 233400 | |||||
| Less Closing Inventory - FG | 10000 | ||||
| COST OF SALES | 223400 | ||||
| GROSS PROFIT | 96600 | ||||
| Less Expenses | |||||
| Administration Expenses | 2000 | ||||
| Office Light and Heat | 1000 | ||||
| Office Insurance | 10000 | ||||
| Office Rent and Rates | 500 | ||||
| Depn - Office Equipment (10%x7000) | 700 | ||||
| Increase in BDP (10%x45000=4500-1000) | 3500 | 17700 | |||
| 78900 | |||||
| Add Other Income | |||||
| 0 | |||||
| PROFIT FOR THE YEAR | 78900 | ||||
| Cost per Unit | |||||
| Factory Cost of Production | 221400 | ||||
| Units Produced | 20000 | ||||
| 11.07 |