2. From the following information, draw up a manufacturing account and the trading account section of the income statement for the six months ending 30 September, 2012. You should show clearly: a. Cost of raw materials consumed b. Prime cost of production c. Gross cost of production d. Net Production cost Inventory 1 April 2012: GH¢ Raw materials 2,990 Work-in-progress 3,900| Finished goods 15,300| Inventory, 30 September 2012: Raw materials 4,200 Work-in-progress 3,600 Finished goods 17,700 Purchase of raw materials 15,630 Carriage on raw materials 126 Direct wages 48,648 Factory general expenses 7,048 Office salaries 22,200 Depreciation of office furniture 420 Carriage outwards 191 Advertising 1,472 Bad debts 200 Sales less returns 112,410 Sales of scrap 1,317 Discount received 188 Depreciation of factory equipment Rent and business rates (factory three-quarters, office one-quarter) 4,200 2,800
2. From the following information, draw up a manufacturing account and the trading account section of the income statement for the six months ending 30 September, 2012. You should show clearly: a. Cost of raw materials consumed b. Prime cost of production c. Gross cost of production d. Net Production cost Inventory 1 April 2012: GH¢ Raw materials 2,990 Work-in-progress 3,900| Finished goods 15,300| Inventory, 30 September 2012: Raw materials 4,200 Work-in-progress 3,600 Finished goods 17,700 Purchase of raw materials 15,630 Carriage on raw materials 126 Direct wages 48,648 Factory general expenses 7,048 Office salaries 22,200 Depreciation of office furniture 420 Carriage outwards 191 Advertising 1,472 Bad debts 200 Sales less returns 112,410 Sales of scrap 1,317 Discount received 188 Depreciation of factory equipment Rent and business rates (factory three-quarters, office one-quarter) 4,200 2,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:2. From the following information, draw up a manufacturing
account and the trading account section of the income
statement for the six months ending 30 September, 2012.
You should show clearly:
a. Cost of raw materials consumed
b. Prime cost of production
c. Gross cost of production
d. Net Production cost
Inventory 1 April 2012:
GH¢
Raw materials
2,990
Work-in-progress
3,900
Finished goods
15,300|
Inventory, 30 September 2012:
Raw materials
4,200
Work-in-progress
3,600
Finished goods
17,700|
Purchase of raw materials
15,630
Carriage on raw materials
126
Direct wages
48,648
Factory general expenses
7,048
Office salaries
22,200
Depreciation of office furniture
420
Carriage outwards
191
Advertising
1,472
Bad debts
200
112,410
1,317
Sales less returns
Sales of scrap
Discount received
188
Depreciation of factory equipment
Rent and business rates (factory three-quarters, office one-quarter)
4,200
2,800
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