Additional information:i.Inventory in hand at 31 December 2020:a. Raw materialsb. Work in processRM25,000RM11,000c. Finished goodsDepreciation of 10% on plant and machinery using the straight-line methodiji. 80% of fuel and light and 75% of rent and rates to be charged to manufacturingiy Provision for doubtful debts: 5% of sundry accounts receivable.v. RM4,000 outstanding for fuel and lightvi. Rent and business rates paid in advance: RM5,000 ( -)vii. Market value of finished goods: RM382,000RM26,000Required:a) Prepare statement of cost production for the year ended 31 December 2020.b) Prepare statement of comprehensive income for the year ended 31 December 2020c) Prepare statement of financial position as at 31 December 2020. 2. The following information taken from Jejai Limited:ParticularsDebitRMCreditRMPurchase of raw materialsFuel and lightAdministration salariesFactory wagesCarriage outwardsRent and business ratesSalesReturn inwardGeneral office expensesRepairs to plant and machineryInventory at 1 January 2020:Raw materialsWork in processFiníshed goodsSundry accounts payableCapitalFreehold premisesPlant and machineryAccounts receivable258,00021,00017,00059,0004,00021,000482,0007,0009,0009,00021,00014,00023,00037,000457,000410,00080,00020,0008,000Accumulated provision for depreciation on plant andmachineryCost in hand11,000984,000 984,000ТОTAL

Answered: Image /qna-images/answer/389bea47-a623-43ca-8377-f737a157b075.jpg

2. The following information taken from Jejai Limited: Particulars Debit RM Credit RM Purchase of raw materials Fuel and light Administration salaries Factory wages Carriage outwards Rent and business rates Sales Return inward General office expenses Repairs to plant and machinery Inventory at 1 January 2020: Raw materials Work in process Finished goods Sundry accounts payable Capital Freehold premises Plant and machinery Accounts receivable Accumulated provision for depreciation on plant and machinery Cost in hand 258,000 21,000 17,000 59,000 4,000 21,000 482,000 7,000 9,000 9,000 21,000 14,000 23,000 37,000 457,000 410,000 80,000 20,000 8,000 11,000 984,000 984,000 ТОTAL

2. The following information taken from Jejai Limited: Particulars Debit RM Credit RM Purchase of raw materials Fuel and light Administration salaries Factory wages Carriage outwards Rent and business rates Sales Return inward General office expenses Repairs to plant and machinery Inventory at 1 January 2020: Raw materials Work in process Finished goods Sundry accounts payable Capital Freehold premises Plant and machinery Accounts receivable Accumulated provision for depreciation on plant and machinery Cost in hand 258,000 21,000 17,000 59,000 4,000 21,000 482,000 7,000 9,000 9,000 21,000 14,000 23,000 37,000 457,000 410,000 80,000 20,000 8,000 11,000 984,000 984,000 ТОTAL

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Additional information:
i.
Inventory in hand at 31 December 2020:
a. Raw materials
b. Work in process
RM25,000
RM11,000
c. Finished goods
Depreciation of 10% on plant and machinery using the straight-line method
iji. 80% of fuel and light and 75% of rent and rates to be charged to manufacturing
iy Provision for doubtful debts: 5% of sundry accounts receivable.
v. RM4,000 outstanding for fuel and light
vi. Rent and business rates paid in advance: RM5,000 ( -)
vii. Market value of finished goods: RM382,000
RM26,000
Required:
a) Prepare statement of cost production for the year ended 31 December 2020.
b) Prepare statement of comprehensive income for the year ended 31 December 2020
c) Prepare statement of financial position as at 31 December 2020.

2. The following information taken from Jejai Limited:
Particulars
Debit
RM
Credit
RM
Purchase of raw materials
Fuel and light
Administration salaries
Factory wages
Carriage outwards
Rent and business rates
Sales
Return inward
General office expenses
Repairs to plant and machinery
Inventory at 1 January 2020:
Raw materials
Work in process
Finíshed goods
Sundry accounts payable
Capital
Freehold premises
Plant and machinery
Accounts receivable
258,000
21,000
17,000
59,000
4,000
21,000
482,000
7,000
9,000
9,000
21,000
14,000
23,000
37,000
457,000
410,000
80,000
20,000
8,000
Accumulated provision for depreciation on plant and
machinery
Cost in hand
11,000
984,000 984,000
ТОTAL

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