| Manufacturing Accounts -Worked Example 2 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| O'Connell PLC | |||||
| Manufacturing Account for the year ended 31 December Year 3 | |||||
| £ | £ | ||||
| Raw Materials Cost | |||||
| Opening Inventory | 10000 | ||||
| Add Purchases | 180000 | ||||
| Less Purchases Returns | 4000 | 176000 | |||
| 186000 | |||||
| Add Carriage In | 0 | ||||
| 186000 | |||||
| Less Closing Inventory | 7500 | ||||
| COST OF RAW MATERIALS CONSUMED | 178500 | ||||
| Add Direct Costs | |||||
| Manufacturing Wages | 50000 | 50000 | |||
| PRIME COST OF MANUACTURE | 228500 | ||||
| Add Factory Overheads | |||||
| Heat and Light | 12000 | ||||
| Supervision | 25000 | ||||
| Insurance (10000-4500) | 5500 | ||||
| Cleaning and Maintenance (1200+500) | 1700 | ||||
| Depn - Plant and Machinery (5%x250000) | 12500 | 56700 | |||
| 285200 | |||||
| Add Inventory - Work in Progress at Start | 5000 | ||||
| 290200 | |||||
| Less Inventory - Work in Progress at End | 3500 | ||||
| FACTORY COST OF PRODUCTION | 286700 |