| 1.77 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| Davis PLC | |||||
| Manufacturing Account for the year ended 31 December Year 3 | |||||
| £OOO | £OOO | ||||
| PRIME COST OF MANUACTURE | 247 | ||||
| Add Factory Overheads | |||||
| Indirect Wages | 25 | ||||
| General Expenses (45+5=50x60%) | 30 | ||||
| Lighting and Heating (3/6x48) | 24 | ||||
| Depn - Machinery (400-100=300x25%) | 75 | ||||
| 154 | |||||
| 401 | |||||
| Add Inventory - Work in Progress at Start | 15 | ||||
| 416 | |||||
| Less Inventory - Work in Progress at End | 27 | ||||
| FACTORY COST OF PRODUCTION | 389 | ||||
| Add Profit on Manufacture | 31 | ||||
| WHOLESALE VALUE OF FINISHED GOODS | 420 | ||||
| (150000 units x £2.80) | |||||
| Davis PLC | |||||
| Income Statement for the year ended 31 December Year 3 | |||||
| £OOO | £OOO | £OOO | |||
| Sales Revenue | 691 | ||||
| Less Sales Returns | 0 | ||||
| Net Sales Revenue | 691 | ||||
| Less Cost of Sales | |||||
| Opening Inventory - FG | 21 | ||||
| Add Wholesale Value of Finished Goods | 420 | ||||
| 441 | |||||
| Add Purchases - FG | 0 | ||||
| Less Purchases Returns - FG | 0 | 0 | |||
| 441 | |||||
| Add Carriage In - FG | 0 | ||||
| 441 | |||||
| Add Warehouse Wages | 21 | ||||
| Add Lighting and Heating (2/6x48) | 16 | 37 | |||
| 478 | |||||
| Less Closing Inventory - FG | 18 | ||||
| COST OF SALES | 460 | ||||
| GROSS PROFIT | 231 | ||||
| Add Profit on Manufacture | 31 | ||||
| 262 | |||||
| Less Expenses | |||||
| Office Wages | 23 | ||||
| General Expenses (45+5=50x40%) | 20 | ||||
| Office Insurance (6-2) | 4 | ||||
| Lighting and Heating (1/6x48) | 8 | ||||
| Debenture Interest (5+5) | 10 | ||||
| Depn - Office Equipment (20%x250) | 50 | ||||
| 115 | |||||
| 147 | |||||
| Add Other Income | |||||
| Decrease in BDP (3-2) | 1 | ||||
| 1 | |||||
| PROFIT FOR THE YEAR BEFORE TAX | 148 | ||||
| Less Corporation Tax (25%x148) | 37 | ||||
| PROFIT FOR THE YEAR AFTER TAX | 111 | ||||
| Add Unappropriated Profit | 5 | ||||
| 116 | |||||
| Less | |||||
| Interim Dividend on Ordinary Shares | 30 | ||||
| Final Dividend on Ordinary Shares | 20 | 50 | |||
| Goodwill Write Down | 15 | 65 | |||
| UNAPPROPRIATED PROFIT | 51 |