| Manufacturing Accounts - Worked Example 1 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| Robinson PLC | |||||
| Manufacturing Account for the year ended 31 December Year 5 | |||||
| £ | £ | ||||
| Raw Materials Cost | |||||
| Opening Inventory | 12000 | ||||
| Add Purchases | 120000 | ||||
| Less Purchases Returns | 4000 | 116000 | |||
| 128000 | |||||
| Add Carriage In | 0 | ||||
| 128000 | |||||
| Less Closing Inventory | 8000 | ||||
| COST OF RAW MATERIALS CONSUMED | 120000 | ||||
| Add Direct Costs | |||||
| Manufacturing Wages | 65000 | 65000 | |||
| PRIME COST OF MANUACTURE | 185000 | ||||
| Add Factory Overheads | |||||
| Heat and Light (16000+800) | 16800 | ||||
| Supervision | 29000 | ||||
| Insurance | 8000 | ||||
| Rent (26000-2000) | 24000 | ||||
| Depn - Plant and Machinery (10%x200000) | 20000 | 97800 | |||
| 282800 | |||||
| Add Inventory - Work in Progress at Start | 6000 | ||||
| 288800 | |||||
| Less Inventory - Work in Progress at End | 4000 | ||||
| FACTORY COST OF PRODUCTION | 284800 |