U1 Booklet 3 Manufacturing Accounts - Solutions.xlsx - 5We2 (app)

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Manufacturing Accounts - W.Ex 2 (apportionment) Unnamed: 1 Unnamed: 2 Unnamed: 3 Unnamed: 4 SOLUTION
Chesterton PLC
Manufacturing Account for the year ended 31 March Year 7
£ £
Raw Materials Cost
Opening Inventory 17500
Add Purchases 95600
Less Purchases Returns 0 95600
113100
Add Carriage In 0
113100
Less Closing Inventory 13200
COST OF RAW MATERIALS CONSUMED 99900
Add Direct Costs
Wages and Salaries - Factory Direct 138500 138500
PRIME COST OF MANUACTURE 238400
Add Factory Overheads
Wages and Salaries - Factory Indirect 27200
Power and Fuel (18260+390) 18650
Insurance (3680-240=3440x5/8) 2150
Depn - Machinery (20%x82000) 16400 64400
302800
Add Inventory - Work in Progress at Start 15270
318070
Less Inventory - Work in Progress at End 15700
FACTORY COST OF PRODUCTION 302370
Chesterton PLC
Income Statement for the year ended 31 March Year 7
£ £ £
Sales Revenue 410400
Less Sales Returns 5200
Net Sales Revenue 405200
Less Cost of Sales
Opening Inventory - FG 24800
Add Factory Cost of Production 302370
327170
Add Purchases - FG 0
Less Purchases Returns - FG 0 0
327170
Add Carriage In - FG 0
327170
Less Closing Inventory - FG 14600
COST OF SALES 312570
GROSS PROFIT 92630
Less Expenses
Insurance (3680-240=3440x3/8) 1290
1290
91340
Add Other Income
0
PROFIT FOR THE YEAR 91340