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type in a table TUTORIAL: Manufacturing Account The following are the balances o

ID: 2331000 • Letter: T

Question

type in a table

TUTORIAL: Manufacturing Account The following are the balances of T Jackson for the yoar ended 31 December 2011 RM Stock at 1 January 2011 Raw materials Work in Progress Finished goods 18,450 23,600 17,470 St At 64.300 Purchases : Rew materials Carriage on raw materials Direct Labour Office salaries Rent Office lighting & heating 1,605 65,810 16,920 2,700 5.760 8,300 Depreciation: Works machinery Office equipment 1,950 200,600 Sales Factory Fuel and power Rent is to be apportioned Factory 2/3; Office 1/3 Stocks at 31 December 2011 were 5,920 Raw materials Work in Progress Finished goods 20,210 17,390 21,485 PREPARE A Manufeuing, radingand prft and lo aeout fo he ear ended st December 2011.

Explanation / Answer

Answer

Manufacturing Trading and Profit & Loss Account

Work in Process Beginning Inventory (1 Jan 2011)

$          23,600.00

Raw Material Used:

Raw Material Beg Inventory

$   18,450.00

Raw Material Purchased

$   64,300.00

Carriage on Raw Material

$      1,605.00

Raw Material Ending Inventory

$ (20,210.00)

Direct material used

$ 64,145.00

Direct labor

$ 65,810.00

Factory Rent

$    1,800.00

Depreciation: Work Machinery

$    8,300.00

Factory Fuel & Power

$   5,920.00

Total Manufacturing Cost

$       145,975.00

Total Cost of Work In Process

$       169,575.00

Less:

Work in Process Ending Inventory (31 Dec 2011)

$          17,390.00

Cost of Goods Manufactured Transferred to Trading Profit and Loss Account

$       152,185.00

Finished goods Beginning Inventory

$          17,470.00

Cost of Goods Manufactured Transferred to Trading Profit and Loss Account

$       152,185.00

Cost of Goods Available for Sale

$       169,655.00

Less:

Finished goods Ending Inventory

$          21,485.00

Cost of Goods Sold

$       148,170.00

Sales

$       200,600.00

Cost of Goods Sold

$       148,170.00

Gross Profits

$          52,430.00

Less - Operating Expenses:

Office Salaries

$ 16,920.00

Office Rent

$        900.00

Office Lightning & heating

$    5,760.00

Depreciation: Office Equipment

$    1,950.00

Total Operating Expenses

$          25,530.00

Net Operating Income - Net Profits

$          26,900.00

Manufacturing Trading and Profit & Loss Account

Work in Process Beginning Inventory (1 Jan 2011)

$          23,600.00

Raw Material Used:

Raw Material Beg Inventory

$   18,450.00

Raw Material Purchased

$   64,300.00

Carriage on Raw Material

$      1,605.00

Raw Material Ending Inventory

$ (20,210.00)

Direct material used

$ 64,145.00

Direct labor

$ 65,810.00

Factory Rent

$    1,800.00

Depreciation: Work Machinery

$    8,300.00

Factory Fuel & Power

$   5,920.00

Total Manufacturing Cost

$       145,975.00

Total Cost of Work In Process

$       169,575.00

Less:

Work in Process Ending Inventory (31 Dec 2011)

$          17,390.00

Cost of Goods Manufactured Transferred to Trading Profit and Loss Account

$       152,185.00

Finished goods Beginning Inventory

$          17,470.00

Cost of Goods Manufactured Transferred to Trading Profit and Loss Account

$       152,185.00

Cost of Goods Available for Sale

$       169,655.00

Less:

Finished goods Ending Inventory

$          21,485.00

Cost of Goods Sold

$       148,170.00

Sales

$       200,600.00

Cost of Goods Sold

$       148,170.00

Gross Profits

$          52,430.00

Less - Operating Expenses:

Office Salaries

$ 16,920.00

Office Rent

$        900.00

Office Lightning & heating

$    5,760.00

Depreciation: Office Equipment

$    1,950.00

Total Operating Expenses

$          25,530.00

Net Operating Income - Net Profits

$          26,900.00