U1 Booklet 3 Manufacturing Accounts - Solutions.xlsx - 5We1 (app)

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Manufacturing Accounts - W.Ex 1 (Apportionment) Unnamed: 1 Unnamed: 2 Unnamed: 3 Unnamed: 4 SOLUTION
Jackson PLC
Manufacturing Account for the year ended 31 December Year 4
£ £
Raw Materials Cost
Opening Inventory 18450
Add Purchases 64300
Less Purchases Returns 0 64300
82750
Add Carriage In 1605
84355
Less Closing Inventory 20210
COST OF RAW MATERIALS CONSUMED 64145
Add Direct Costs
Direct Labour 65810 65810
PRIME COST OF MANUACTURE 129955
Add Factory Overheads
Rent (2/3x2700) 1800
Depn - Works Machinery 8300
Fuel and Power 5920
16020
145975
Add Inventory - Work in Progress at Start 23600
169575
Less Inventory - Work in Progress at End 17390
FACTORY COST OF PRODUCTION 152185
Jackson PLC
Income Statement for the year ended 31 December Year 4
£ £ £
Sales Revenue 200600
Less Sales Returns 0
Net Sales Revenue 200600
Less Cost of Sales
Opening Inventory - FG 17470
Add Factory Cost of Production 152185
169655
Add Purchases - FG 0
Less Purchases Returns - FG 0 0
169655
Add Carriage In - FG 0
169655
Less Closing Inventory - FG 21485
COST OF SALES 148170
GROSS PROFIT 52430
Less Expenses
Office Salaries 16920
Rent (1/3x2700) 900
Lighting and Heating 5760
Depn - Office Equipment 1950
25530
26900
Add Other Income
0
PROFIT FOR THE YEAR 26900