312 3 The following balances 2015 were extracted from Polygon Sdn Bhd for the ye

ID: 2328178 • Letter: 3

Question

312 3 The following balances 2015 were extracted from Polygon Sdn Bhd for the year ended 31 December RM Purchases of raw materials 110,000 1,000 11,000 10,000 80,000 4,200 750 5,000 22,000 3,300 Returns of raw materials Opening stock of raw materials Closing stock of raw materials Direct wages Electricity of factory Insurance of factory building Depreciation of factory machinery Supervisor's wages Rovalties Required: Prepare the manufacturing account for Polygon Sdn Bhd for the year ended 31 December 2015

Explanation / Answer

Polygon Sdn. Bhd.

Manufacturing Account

(For the year ending December 31, 2015)

Opening stock of raw materials

$11000

+ Purchases of raw materials

$110000

- Returns of raw materials

($1000)

- Closing stock of raw materials

($10000)

Raw materials used in production

$110000

Add: Direct wages

$80000

Add: Other direct expenses (Royalties)

$3300

Prime cost

$193300

Add: Factory overheads;

Electricity of factory

$4200

Insurance of factory building

$750

Depreciation of factory machinery

$5000

Supervisor’s wages

$22000

$31950

Total manufacturing costs

$225250