Additional information:Inventory at 2021 December 31: $Raw materials 62 800Work-in-progress 15 100Finished goods 36 500i. At 2021 December 31, rent of $3 500 was owing and prepaid light and heat amounted to $1 700. ii. Rent, light and heat are apportioned as follows: factory 60%, administration 40%.iii. Factory machinery is to be depreciated using the straight-line method at 10%.iv. Office equipment is to be depreciated by the reducing balance method at 15%A. Prepare the Manufacturing Account for year ended 2021 December 31. B. Prepare the Income Statement for year ended 2021 December 31. James Limited manufactures bicycle parts but also purchases some parts for resale. The followinginformation is available for year ended 2021 December 31:Inventory at 2021 January 01$Raw materials63 000Work-in-progress17 000Finished goods16 480Sales of finished goods922 500Purchases of finished goods61 700Purchases of raw materials358 100Carriage of finished goods2 400Carriage of raw materials1 400Machine operators' wages153 500Factory supervisor's salary48 100Administrative and sales wages62 100Factory machinery at cost228 000Office equipment at cost180 000Provision for depreciation of factory machinery45 60027 000Provision for depreciation of office equipmentRent76 500Light and heat39 800

Name: Additional information:Inventory at 2021 December 31:
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Description: Additional information:Inventory at 2021 December 31: $Raw materials 62 800Work-in-progress 15 100Finished goods 36 500i. At 2021 December 31, rent of $3 500 was owing and prepa

The income statement summarizes a business's financial results over a given of time. The income…

Answered: Additional information: Inventory at…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Additional information:
Inventory at 2021 December 31:
$
Raw materials 62 800
Work-in-progress 15 100
Finished goods 36 500
i. At 2021 December 31, rent of $3 500 was owing and prepaid light and heat amounted to $1 700.
ii. Rent, light and heat are apportioned as follows: factory 60%, administration 40%.
iii. Factory machinery is to be depreciated using the straight-line method at 10%.
iv. Office equipment is to be depreciated by the reducing balance method at 15%

A. Prepare the Manufacturing Account for year ended 2021 December 31.
B. Prepare the Income Statement for year ended 2021 December 31.

James Limited manufactures bicycle parts but also purchases some parts for resale. The following
information is available for year ended 2021 December 31:
Inventory at 2021 January 01
$
Raw materials
63 000
Work-in-progress
17 000
Finished goods
16 480
Sales of finished goods
922 500
Purchases of finished goods
61 700
Purchases of raw materials
358 100
Carriage of finished goods
2 400
Carriage of raw materials
1 400
Machine operators' wages
153 500
Factory supervisor's salary
48 100
Administrative and sales wages
62 100
Factory machinery at cost
228 000
Office equipment at cost
180 000
Provision for depreciation of factory machinery
45 600
27 000
Provision for depreciation of office equipment
Rent
76 500
Light and heat
39 800

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