| 1.78 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| Glenburn PLC | |||||
| Manufacturing Account for the year ended 31 December Year 2 | |||||
| £OOO | £OOO | ||||
| Raw Materials Cost | |||||
| Opening Inventory | 40 | ||||
| Add Purchases | 300 | ||||
| Less Purchases Returns | 0 | 300 | |||
| 340 | |||||
| Add Carriage In | 10 | ||||
| 350 | |||||
| Less Closing Inventory | 15 | ||||
| COST OF RAW MATERIALS CONSUMED | 335 | ||||
| Add Direct Costs | |||||
| Manufacturing Wages (260+5) | 265 | ||||
| Royalties | 24 | 289 | |||
| PRIME COST OF MANUACTURE | 624 | ||||
| Add Factory Overheads | |||||
| Indirect Wages | 34 | ||||
| Insurance (10-1) | 9 | ||||
| Electricity (34+2=36x2/3) | 24 | ||||
| Depn - Machinery (50-20=30x10%) | 3 | ||||
| 70 | |||||
| 694 | |||||
| Add Inventory - Work in Progress at Start | 30 | ||||
| 724 | |||||
| Less Inventory - Work in Progress at End | 27 | ||||
| FACTORY COST OF PRODUCTION | 697 | ||||
| Less Loss on Manufacture | -7 | ||||
| WHOLESALE VALUE OF FINISHED GOODS | 690 | ||||
| Glenburn PLC | |||||
| Income Statement for the year ended 31 December Year 2 | |||||
| £OOO | £OOO | £OOO | |||
| Sales Revenue | 900 | ||||
| Less Sales Returns | 0 | ||||
| Net Sales Revenue | 900 | ||||
| Less Cost of Sales | |||||
| Opening Inventory - FG | 20 | ||||
| Add Wholesale Value of Finished Goods | 690 | ||||
| 710 | |||||
| Add Purchases - FG | 0 | ||||
| Less Purchases Returns - FG | 0 | 0 | |||
| 710 | |||||
| Add Carriage In - FG | 0 | ||||
| 710 | |||||
| Add Warehouse Expenses | 5 | ||||
| 715 | |||||
| Less Closing Inventory - FG | 32 | ||||
| COST OF SALES | 683 | ||||
| GROSS PROFIT | 217 | ||||
| Less Loss on Manufacture | -7 | ||||
| 210 | |||||
| Less Expenses | |||||
| Electricity (34+2=36x1/3) | 12 | ||||
| Office and Selling Expenses | 28 | ||||
| Interest on Overdraft | 1 | ||||
| Increase in BDP (5%x80=4-3) | 1 | ||||
| 42 | |||||
| 168 | |||||
| Add Other Income | |||||
| 0 | |||||
| PROFIT FOR THE YEAR BEFORE TAX | 168 | ||||
| Less Corporation Tax (25%x168) | 42 | ||||
| PROFIT FOR THE YEAR AFTER TAX | 126 | ||||
| Add Unappropriated Profit | 5 | ||||
| 131 | |||||
| Less | |||||
| Interim Dividend on Preference Shares | 2 | ||||
| Final Dividend on Preference Shares | 6 | 8 | |||
| Dividend on Ordinary Shares (0.08x400) | 32 | 40 | |||
| UNAPPROPRIATED PROFIT | 91 |