| 1.72 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| Jean Marsh | |||||
| Manufacturing Account for the year ended 31 December Year 2 | |||||
| £ | £ | ||||
| Raw Materials Cost | |||||
| Opening Inventory | 3400 | ||||
| Add Purchases | 18000 | ||||
| Less Purchases Returns | 0 | 18000 | |||
| 21400 | |||||
| Add Carriage In | 800 | ||||
| 22200 | |||||
| Less Closing Inventory | 2900 | ||||
| COST OF RAW MATERIALS CONSUMED | 19300 | ||||
| Add Direct Costs | |||||
| Direct Factory Wages | 18500 | 18500 | |||
| PRIME COST OF MANUACTURE | 37800 | ||||
| Add Factory Overheads | |||||
| Factory Expenses | 1200 | ||||
| Lighting (4/5x2500) | 2000 | ||||
| Rent (4/5x3750) | 3000 | ||||
| Insurance (950-150=800x3/4) | 600 | ||||
| Depn - Plant and Machinery | 1500 | ||||
| 8300 | |||||
| 46100 | |||||
| Add Inventory - Work in Progress at Start | 0 | ||||
| 46100 | |||||
| Less Inventory - Work in Progress at End | 0 | ||||
| FACTORY COST OF PRODUCTION | 46100 | ||||
| Jean Marsh | |||||
| Income Statement for the year ended 31 December Year 2 | |||||
| £ | £ | £ | |||
| Sales Revenue | 90000 | ||||
| Less Sales Returns | 0 | ||||
| Net Sales Revenue | 90000 | ||||
| Less Cost of Sales | |||||
| Opening Inventory - FG | 6100 | ||||
| Add Factory Cost of Production | 46100 | ||||
| 52200 | |||||
| Add Purchases - FG | 0 | ||||
| Less Purchases Returns - FG | 0 | 0 | |||
| 52200 | |||||
| Add Carriage In - FG | 0 | ||||
| 52200 | |||||
| Less Closing Inventory - FG | 8200 | ||||
| COST OF SALES | 44000 | ||||
| GROSS PROFIT | 46000 | ||||
| Less Expenses | |||||
| Office Salaries | 16900 | ||||
| Salary - J Marsh | 10400 | ||||
| Office Expenses (750+75) | 825 | ||||
| Lighting (1/5x2500) | 500 | ||||
| Rent (1/5x3750) | 750 | ||||
| Insurance (950-150=800x1/4) | 200 | ||||
| Advertising | 1400 | ||||
| Bad Debts | 650 | ||||
| Carriage Out | 375 | ||||
| Depn - Motor Car | 500 | 32500 | |||
| 13500 | |||||
| Add Other Income | |||||
| Discount Received | 1600 | ||||
| 1600 | |||||
| PROFIT FOR THE YEAR | 15100 | ||||
| Jean Marsh | |||||
| Statement of Financial Position as at 31 December Year 2 | |||||
| COST | DEPN | NBV | |||
| £ | £ | £ | |||
| Non-Current Assets | |||||
| Plant and Machinery | 9100 | 1500 | 7600 | ||
| Motor Car | 4200 | 500 | 3700 | ||
| Intangible Assets: Goodwill | 0 | ||||
| 11300 | |||||
| Current Assets | |||||
| Closing Inventory - Raw Materials | 2900 | ||||
| Closing Inventory - Work in Progress | 0 | ||||
| Closing Inventory - Finished Goods | 8200 | 11100 | |||
| Cash and Cash Equivalents | 3925 | ||||
| Trade Receivables | 7700 | ||||
| Insurance Receivable | 150 | ||||
| 22875 | |||||
| Current Liabilities | |||||
| Trade Payables | 6000 | ||||
| Office Expenses Payable | 75 | 6075 | |||
| WORKING EQUITY | 16800 | ||||
| NET ASSETS EMPLOYED | 28100 | ||||
| Non-Current Liabilities | |||||
| Bank Loan | 0 | 0 | |||
| NET ASSETS | 28100 | ||||
| Equity | |||||
| Equity | 15000 | ||||
| Profit for the Year | 15100 | ||||
| 30100 | |||||
| Drawings | 2000 | ||||
| 28100 |