+The bookkeeper of Chung Manufacturing provides you with the following trial balance andinformation.Purchases of raw materialsFuel and lightAdministration salariesFactory wagesCarriage outwardsRent and business ratesSalesReturns inwardGeneral office expensesRepairs to plant and machineryInventory at 1 January 2023:Raw materialsWork-in-progressFinished goodsSundry accounts payableCapitalFreehold premisesPlant and machineryAccounts receivableTrial balance as at 31 December 2023RM364,00021,00017,00065,0004,00021,000Accumulated depreciation on plant andmachineryCash in hand8,0009,00012,000Raw materialsWork-in-progress25,00015,00023,000410,00080,00025,00015,0001,114,000Additional information:į. Depreciation on plant and machinery is 20% - straight-line method.ii. Closing inventories at 31 December 2023.RM30,00011,000Finished goods25,000iii. Allocate 70% of fuel and light and 65% of rent and rates to manufacturing.iv. RM3,000 outstanding for fuel and light.RM510,00045,000551,0008,0001,114,000Required:Prepare the manufacturing account and income statement for the year ended 31 December 2023.

Name: +The bookkeeper of Chung Manufacturing provides you with the followin
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Description: +The bookkeeper of Chung Manufacturing provides you with the following trial balance andinformation.Purchases of raw materialsFuel and lightAdministration salariesFactory wagesCarriage outwardsRent and business ratesSalesReturns inwardGeneral office

Manufacturing account shows all costs incurred on production and manufacturing of goods. It includes…

Business

Accounting

Additional information: į. Depreciation on plant and machinery is 20% - straight-line method. ii. Closing inventories at 31 December 2023. RM 30,000 11,000 Finished goods 25,000 iii. Allocate 70% of fuel and light and 65% of rent and rates to manufacturing. iv. RM3,000 outstanding for fuel and light. Required: Raw materials Work-in-progress Prepare the manufacturing account and income statement for the year ended 31 December 2023. D

Additional information: į. Depreciation on plant and machinery is 20% - straight-line method. ii. Closing inventories at 31 December 2023. RM 30,000 11,000 Finished goods 25,000 iii. Allocate 70% of fuel and light and 65% of rent and rates to manufacturing. iv. RM3,000 outstanding for fuel and light. Required: Raw materials Work-in-progress Prepare the manufacturing account and income statement for the year ended 31 December 2023. D

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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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

Topic Video

Question

+
The bookkeeper of Chung Manufacturing provides you with the following trial balance and
information.
Purchases of raw materials
Fuel and light
Administration salaries
Factory wages
Carriage outwards
Rent and business rates
Sales
Returns inward
General office expenses
Repairs to plant and machinery
Inventory at 1 January 2023:
Raw materials
Work-in-progress
Finished goods
Sundry accounts payable
Capital
Freehold premises
Plant and machinery
Accounts receivable
Trial balance as at 31 December 2023
RM
364,000
21,000
17,000
65,000
4,000
21,000
Accumulated depreciation on plant and
machinery
Cash in hand
8,000
9,000
12,000
Raw materials
Work-in-progress
25,000
15,000
23,000
410,000
80,000
25,000
15,000
1,114,000
Additional information:
į. Depreciation on plant and machinery is 20% - straight-line method.
ii. Closing inventories at 31 December 2023.
RM
30,000
11,000
Finished goods
25,000
iii. Allocate 70% of fuel and light and 65% of rent and rates to manufacturing.
iv. RM3,000 outstanding for fuel and light.
RM
510,000
45,000
551,000
8,000
1,114,000
Required:
Prepare the manufacturing account and income statement for the year ended 31 December 2023.

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