| 1.73 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| Specs Manufacturers | |||||
| Manufacturing Account for the year ended 31 October Year 4 | |||||
| £OOO | £OOO | ||||
| Raw Materials Cost | |||||
| Opening Inventory | 35 | ||||
| Add Purchases | 500 | ||||
| Less Purchases Returns | 0 | 500 | |||
| 535 | |||||
| Add Carriage In | 10 | ||||
| 545 | |||||
| Less Closing Inventory | 50 | ||||
| COST OF RAW MATERIALS CONSUMED | 495 | ||||
| Add Direct Costs | |||||
| Production Wages | 200 | 200 | |||
| PRIME COST OF MANUACTURE | 695 | ||||
| Add Factory Overheads | |||||
| Rates (5-2) | 3 | ||||
| Repairs to Machinery | 2 | ||||
| Insurance of Factory Property | 8 | ||||
| Factory Management Salaries | 15 | ||||
| Indirect Factory Expenses (15+5) | 20 | ||||
| Depn - Machinery (10%x200) | 20 | 68 | |||
| 763 | |||||
| Add Inventory - Work in Progress at Start | 50 | ||||
| 813 | |||||
| Less Inventory - Work in Progress at End | 40 | ||||
| FACTORY COST OF PRODUCTION | 773 | ||||
| Specs Manufacturers | |||||
| Income Statement for the year ended 31 October Year 4 | |||||
| £OOO | £OOO | £OOO | |||
| Sales Revenue | 1100 | ||||
| Less Sales Returns | 0 | ||||
| Net Sales Revenue | 1100 | ||||
| Less Cost of Sales | |||||
| Opening Inventory - FG | 30 | ||||
| Add Factory Cost of Production | 773 | ||||
| 803 | |||||
| Add Purchases - FG | 0 | ||||
| Less Purchases Returns - FG | 0 | 0 | |||
| 803 | |||||
| Add Carriage In - FG | 0 | ||||
| 803 | |||||
| Less Closing Inventory - FG | 45 | ||||
| COST OF SALES | 758 | ||||
| GROSS PROFIT | 342 | ||||
| Less Expenses | |||||
| Insurance of Office | 3 | ||||
| Admin Expenses | 40 | ||||
| Depn - Office Equipment (20%x50) | 10 | ||||
| 53 | |||||
| 289 | |||||
| Add Other Income | |||||
| 0 | |||||
| PROFIT FOR THE YEAR | 289 | ||||
| Specs Manufacturers | |||||
| Statement of Financial Position as at 31 October Year 4 | |||||
| COST | DEPN | NBV | |||
| £OOO | £OOO | £OOO | |||
| Non-Current Assets | |||||
| Factory Machinery (35+20) | 200 | 55 | 145 | ||
| Office Equipment (10+10) | 50 | 20 | 30 | ||
| Property | 75 | 0 | 75 | ||
| Intangible Assets: Goodwill | 0 | ||||
| 250 | |||||
| Current Assets | |||||
| Closing Inventory - Raw Materials | 50 | ||||
| Closing Inventory - Work in Progress | 40 | ||||
| Closing Inventory - Finished Goods | 45 | 135 | |||
| Cash and Cash Equivalents | 20 | ||||
| Trade Receivables | 40 | ||||
| Factory Rates Receivable | 2 | ||||
| 197 | |||||
| Current Liabilities | |||||
| Trade Payables | 45 | ||||
| Indirect Factory Expenses Payable | 5 | 50 | |||
| WORKING EQUITY | 147 | ||||
| NET ASSETS EMPLOYED | 397 | ||||
| Non-Current Liabilities | |||||
| Bank Loan | 0 | 0 | |||
| NET ASSETS | 397 | ||||
| Equity | |||||
| Equity | 108 | ||||
| Profit for the Year | 289 | ||||
| 397 | |||||
| Drawings | 0 | ||||
| 397 |