| 1.71 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| Nelson Manufacturers PLC | |||||
| Manufacturing Account for the year ended 31 December Year 9 | |||||
| £ | £ | ||||
| Raw Materials Cost | |||||
| Opening Inventory | 5000 | ||||
| Add Purchases | 90000 | ||||
| Less Purchases Returns | 0 | 90000 | |||
| 95000 | |||||
| Add Carriage In | 0 | ||||
| 95000 | |||||
| Less Closing Inventory | 3000 | ||||
| COST OF RAW MATERIALS CONSUMED | 92000 | ||||
| Add Direct Costs | |||||
| Manufacturing Wages | 75000 | 75000 | |||
| PRIME COST OF MANUACTURE | 167000 | ||||
| Add Factory Overheads | |||||
| Indirect Wages | 20000 | ||||
| General Expenses | 6000 | ||||
| Light and Heat (2500+500) | 3000 | ||||
| Indirect Power | 1500 | ||||
| Rent and Rates | 3000 | ||||
| Depn - Machinery (10%x40000) | 4000 | 37500 | |||
| 204500 | |||||
| Add Inventory - Work in Progress at Start | 6000 | ||||
| 210500 | |||||
| Less Inventory - Work in Progress at End | 1000 | ||||
| FACTORY COST OF PRODUCTION | 209500 | ||||
| Nelson Maufacturers PLC | |||||
| Income Statement for the year ended 31 December Year 9 | |||||
| £ | £ | £ | |||
| Sales Revenue | 320000 | ||||
| Less Sales Returns | 0 | ||||
| Net Sales Revenue | 320000 | ||||
| Less Cost of Sales | |||||
| Opening Inventory - FG | 10000 | ||||
| Add Factory Cost of Production | 209500 | ||||
| 219500 | |||||
| Add Purchases - FG | 0 | ||||
| Less Purchases Returns - FG | 0 | 0 | |||
| 219500 | |||||
| Add Carriage In - FG | 0 | ||||
| 219500 | |||||
| Less Closing Inventory - FG | 7000 | ||||
| COST OF SALES | 212500 | ||||
| GROSS PROFIT | 107500 | ||||
| Less Expenses | |||||
| Administration Expenses | 3000 | ||||
| Office Light and Heat | 500 | ||||
| Office Insurance (4000-100) | 3900 | ||||
| Office Rent and Rates | 1000 | ||||
| Depn - Office Equipment (10%x5000) | 500 | ||||
| Increase in BDP (10%x30000=3000-2000) | 1000 | 9900 | |||
| 97600 | |||||
| Add Other Income | |||||
| 0 | |||||
| PROFIT FOR THE YEAR | 97600 | ||||
| Cost per Unit | |||||
| Factory Cost of Production | 209500 | ||||
| Units Produced | 50000 | ||||
| 4.19 |