| 1.74 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| Melville Manufacturers PLC | |||||
| Manufacturing Account for the year ended 31 August Year 7 | |||||
| £OOO | £OOO | ||||
| Raw Materials Cost | |||||
| Opening Inventory | 50 | ||||
| Add Purchases | 145 | ||||
| Less Purchases Returns | 0 | 145 | |||
| 195 | |||||
| Add Carriage In | 8 | ||||
| 203 | |||||
| Less Closing Inventory | 65 | ||||
| COST OF RAW MATERIALS CONSUMED | 138 | ||||
| Add Direct Costs | |||||
| Production Wages (120-2) | 118 | ||||
| Royalties | 8 | 126 | |||
| PRIME COST OF MANUACTURE | 264 | ||||
| Add Factory Overheads | |||||
| Salaries | 27 | ||||
| Rent and Rates (5/8x80) | 50 | ||||
| Indirect Power | 26 | ||||
| Heating and Lighting (3/4x32) | 24 | ||||
| Repairs (14+1) | 15 | ||||
| Depn - Machinery (350-150=200x20%) | 40 | 182 | |||
| 446 | |||||
| Add Inventory - Work in Progress at Start | 32 | ||||
| 478 | |||||
| Less Inventory - Work in Progress at End | 23 | ||||
| FACTORY COST OF PRODUCTION | 455 | ||||
| Add Profit on Manufacture | 295 | ||||
| WHOLESALE VALUE OF FINISHED GOODS | 750 | ||||
| Melville Manufacturers PLC | |||||
| Income Statement for the year ended 31 August Year 7 | |||||
| £OOO | £OOO | £OOO | |||
| Sales Revenue | 980 | ||||
| Less Sales Returns | 0 | ||||
| Net Sales Revenue | 980 | ||||
| Less Cost of Sales | |||||
| Opening Inventory - FG | 75 | ||||
| Add Wholesale Value of Finished Goods | 750 | ||||
| 825 | |||||
| Add Purchases - FG | 42 | ||||
| Less Purchases Returns - FG | 0 | 42 | |||
| 867 | |||||
| Add Carriage In - FG | 0 | ||||
| 867 | |||||
| Less Closing Inventory - FG | 56 | ||||
| COST OF SALES | 811 | ||||
| GROSS PROFIT | 169 |