| 1.81 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| £ | % of total | ||||
| (a) | Purchase of Raw Materials | 92000 | 0.92 | ||
| Purchase of Finished Goods | 8000 | 0.08 | |||
| Total Purchases | 100000 | ||||
| Carriage In | 500 | ||||
| Raw Materials (500x92%) | 460 | ||||
| Finished Goods (500x8%) | 40 | ||||
| £ | |||||
| (i) | Inventory of Raw Materials at 1 January | 5000 | |||
| Add Purchases | 92000 | ||||
| Add Carriage on Raw Materials | 460 | ||||
| 97460 | |||||
| Less Cost of Raw Materials Consumed | 90000 | ||||
| Inventory of Raw Materials at 31 December | 7460 | ||||
| (ii) | Cost of Raw Materials Consumed | 90000 | |||
| Add Royalties | 1500 | ||||
| Add Direct Labour | 65000 | ||||
| Prime Cost of Manufacture | 156500 | ||||
| (iii) | Factory Cost (before WIP adjustement) | 220000 | |||
| Less Prime Cost of Manufacture | 156500 | ||||
| Factory Overheads | 63500 | ||||
| (iv) | Factory Cost (before WIP adjustement) | 220000 | |||
| Add Opening WIP | 1500 | ||||
| 221500 | |||||
| Less Factory Cost of Production | 215000 | ||||
| Work in Progress on 31 December | 6500 | ||||
| (v) | Factory Cost of Production | 215000 | |||
| Add Profit on Manufacture | 55000 | ||||
| Wholesale Value of Finished Goods | 270000 | ||||
| (vi) | Wholesale Value of Finished Goods | 270000 | |||
| Add Opening WIP | 7500 | ||||
| Add Purchases WIP | 8000 | ||||
| Add Carriage In WIP | 40 | ||||
| 285540 | |||||
| Less Closing WIP | 15000 | ||||
| Cost of Sales | 270540 | ||||
| (vii) | Cost of Sales | 270540 | |||
| Add Gross Profit | 75000 | ||||
| Sales | 345540 | ||||
| (viii) | Gross Profit | 75000 | |||
| Add Manufacturing Profit | 55000 | ||||
| Add Incomes | 1500 | ||||
| 131500 | |||||
| Less Expenses | 95500 | ||||
| Profit for the Year | 36000 | ||||
| (b) | Wholesale Value of Finished Goods | 270000 | |||
| Units Manufactured | 20000 | ||||
| 13.5 |