| 1.76 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| Quickmade Manufacturers PLC | |||||
| Manufacturing Account for the year ended 30 April Year 4 | |||||
| £OOO | £OOO | ||||
| Raw Materials Cost | |||||
| Opening Inventory | 20 | ||||
| Add Purchases | 150 | ||||
| Less Purchases Returns | 0 | 150 | |||
| 170 | |||||
| Add Carriage In | 5 | ||||
| 175 | |||||
| Less Closing Inventory | 18 | ||||
| COST OF RAW MATERIALS CONSUMED | 157 | ||||
| Add Direct Costs | |||||
| Direct Factory Wages (60%x140) | 84 | ||||
| 84 | |||||
| PRIME COST OF MANUACTURE | 241 | ||||
| Add Factory Overheads | |||||
| Indirect Wages (15%x140) | 21 | ||||
| General Manager's Salary (75%x20) | 15 | ||||
| Indirect Expenses | 60 | ||||
| Indirect Power | 40 | ||||
| Rent (2/3x15) | 10 | ||||
| Insurance (3/5x30) | 18 | ||||
| Depn - Machinery | 9 | 173 | |||
| 414 | |||||
| Add Inventory - Work in Progress at Start | 15 | ||||
| 429 | |||||
| Less Inventory - Work in Progress at End | 13 | ||||
| FACTORY COST OF PRODUCTION | 416 | ||||
| Add Profit on Manufacture | 34 | ||||
| WHOLESALE VALUE OF FINISHED GOODS | 450 | ||||
| Quickmade Manufacturers PLC | |||||
| Income Statement for the year ended 30 April Year 4 | |||||
| £OOO | £OOO | £OOO | |||
| Sales Revenue | 900 | ||||
| Less Sales Returns | 0 | ||||
| Net Sales Revenue | 900 | ||||
| Less Cost of Sales | |||||
| Opening Inventory - FG | 10 | ||||
| Add Wholesale Value of Finished Goods | 450 | ||||
| 460 | |||||
| Add Purchases - FG | 60 | ||||
| Less Purchases Returns - FG | 0 | 60 | |||
| 520 | |||||
| Add Carriage In - FG | 0 | ||||
| 520 | |||||
| Add Warehouse Wages (5%x140) | 7 | ||||
| Add General Manager's Salary (5%x20) | 1 | 8 | |||
| 528 | |||||
| Less Closing Inventory - FG | 12 | ||||
| COST OF SALES | 516 | ||||
| GROSS PROFIT | 384 |