| Manufacturing Accounts - W. Ex 1 (wholesale value) | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| Simpson Manufacturers PLC | |||||
| Manufacturing Account for the year ended 31 December Year 2 | |||||
| £OOO | £OOO | ||||
| Raw Materials Cost | |||||
| Opening Inventory | 100 | ||||
| Add Purchases | 300 | ||||
| Less Purchases Returns | 20 | 280 | |||
| 380 | |||||
| Add Carriage In | 20 | ||||
| 400 | |||||
| Less Closing Inventory | 120 | ||||
| COST OF RAW MATERIALS CONSUMED | 280 | ||||
| Add Direct Costs | |||||
| Production Wages | 200 | ||||
| Royalties | 15 | 215 | |||
| PRIME COST OF MANUFACTURE | 495 | ||||
| Add Factory Overheads | |||||
| Salaries | 40 | ||||
| Rent and Rates (100-5=95x80%) | 76 | ||||
| Indirect Power (50+2) | 52 | ||||
| Heating and Lighting (70%x70) | 49 | ||||
| Maintenance | 30 | ||||
| Depn - Machinery (900-300=600x25%) | 150 | 397 | |||
| 892 | |||||
| Add Inventory - Work in Progress at Start | 65 | ||||
| 957 | |||||
| Less Inventory - Work in Progress at End | 50 | ||||
| FACTORY COST OF PRODUCTION | 907 | ||||
| Add Profit on Manufacture | 343 | ||||
| WHOLESALE VALUE OF FINISHED GOODS | 1250 | ||||
| Simpson Manufacturers PLC | |||||
| Income Statement for the year ended 31 December Year 2 | |||||
| £OOO | £OOO | £OOO | |||
| Sales Revenue | 2000 | ||||
| Less Sales Returns | 0 | ||||
| Net Sales Revenue | 2000 | ||||
| Less Cost of Sales | |||||
| Opening Inventory - FG | 150 | ||||
| Add Wholesale Value of Finished Goods | 1250 | ||||
| 1400 | |||||
| Add Purchases - FG | 80 | ||||
| Less Purchases Returns - FG | 0 | 80 | |||
| 1480 | |||||
| Add Carriage In - FG | 0 | ||||
| 1480 | |||||
| Less Closing Inventory - FG | 110 | ||||
| COST OF SALES | 1370 | ||||
| GROSS PROFIT | 630 | ||||
| Add Profit on Manufacture | 343 | ||||
| 973 | |||||
| Less Expenses | |||||
| Carriage Out | 12 | ||||
| Rent and Rates (100-5=95x20%) | 19 | ||||
| Heating and Lighting (30%x70) | 21 | ||||
| Discount Allowed | 10 | ||||
| Bad Debts | 5 | ||||
| Administration Expenses | 150 | ||||
| Increase in BDP | 3 | ||||
| Depn - Office Equipment (10%x150) | 15 | 235 | |||
| 738 | |||||
| Add Other Income | |||||
| Discount Received | 15 | ||||
| 15 | |||||
| PROFIT FOR THE YEAR | 753 |