| 1.75 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| Nixon Manufacturers PLC | |||||
| Manufacturing Account for the year ended 28 February Year 3 | |||||
| £OOO | £OOO | ||||
| Raw Materials Cost | |||||
| Opening Inventory | 250 | ||||
| Add Purchases | 600 | ||||
| Less Purchases Returns | 25 | 575 | |||
| 825 | |||||
| Add Carriage In | 40 | ||||
| 865 | |||||
| Less Closing Inventory | 250 | ||||
| COST OF RAW MATERIALS CONSUMED | 615 | ||||
| Add Direct Costs | |||||
| Production Wages | 400 | ||||
| Royalties | 45 | 445 | |||
| PRIME COST OF MANUACTURE | 1060 | ||||
| Add Factory Overheads | |||||
| Salaries | 90 | ||||
| Rent and Rates (200-15=185x80%) | 148 | ||||
| Indirect Power (100+5) | 105 | ||||
| Heat and Light (70%x120) | 84 | ||||
| Maintenance | 60 | ||||
| Depn - Machinery (1800-700=1100x25%) | 275 | 762 | |||
| 1822 | |||||
| Add Inventory - Work in Progress at Start | 150 | ||||
| 1972 | |||||
| Less Inventory - Work in Progress at End | 110 | ||||
| FACTORY COST OF PRODUCTION | 1862 | ||||
| Add Profit on Manufacture | 638 | ||||
| WHOLESALE VALUE OF FINISHED GOODS | 2500 | ||||
| Nixon Manufacturers PLC | |||||
| Income Statement for the year ended 28 February Year 3 | |||||
| £OOO | £OOO | £OOO | |||
| Sales Revenue | 3500 | ||||
| Less Sales Returns | 0 | ||||
| Net Sales Revenue | 3500 | ||||
| Less Cost of Sales | |||||
| Opening Inventory - FG | 300 | ||||
| Add Wholesale Value of Finished Goods | 2500 | ||||
| 2800 | |||||
| Add Purchases - FG | 150 | ||||
| Less Purchases Returns - FG | 0 | 150 | |||
| 2950 | |||||
| Add Carriage In - FG | 0 | ||||
| 2950 | |||||
| Less Closing Inventory - FG | 320 | ||||
| COST OF SALES | 2630 | ||||
| GROSS PROFIT | 870 | ||||
| Add Profit on Manufacture | 638 | ||||
| 1508 | |||||
| Less Expenses | |||||
| Rent and Rates (200-15=185x20%) | 37 | ||||
| Heat and Light (30%x120) | 36 | ||||
| Discount Allowed | 25 | ||||
| Carriage Out | 30 | ||||
| Bad Debts | 15 | ||||
| Administration Expenses | 240 | ||||
| Increase in BDP | 4 | ||||
| Depn - Office Equipment (10%x400) | 40 | 427 | |||
| 1081 | |||||
| Add Other Income | |||||
| Discount Received | 35 | ||||
| 35 | |||||
| PROFIT FOR THE YEAR | 1116 |