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Asterix plc, a manufacturing company, has extracted the following balances from its books of account for the year ended 30 April 2012:         $ Revenues 6 500 Purchases of raw materials 1 450 Carriage inwards 130 Carriage outwards 75 Direct labour 1 675 Factory overheads 1 350 Office overheads 1 025 Inventories at 1 May 2011:   Raw materials 140 Work in progress 165 Finished goods (at transfer price) 330   Additional information: Factory overheads of $70 000 are accrued at 30 April 2012. Office overheads of $35 000 have been prepaid at 30 April 2012. Depreciation for the year on the non-current assets totaled $150 000 and this is to be split between the factory and the office in the ratio 2:1. Completed production is transferred at a mark-up on cost of 20%. Inventories were valued on 30 April 2012 as follows:             Raw materials                                     235                 work in progress                                320                      Finished goods (at transfer price)     438 REQUIRED Prepare a manufacturing account and income statement for the year ended 30 April

Asterix plc, a manufacturing company, has extracted the following balances from its books of account for the year ended 30 April 2012:         $ Revenues 6 500 Purchases of raw materials 1 450 Carriage inwards 130 Carriage outwards 75 Direct labour 1 675 Factory overheads 1 350 Office overheads 1 025 Inventories at 1 May 2011:   Raw materials 140 Work in progress 165 Finished goods (at transfer price) 330   Additional information: Factory overheads of $70 000 are accrued at 30 April 2012. Office overheads of $35 000 have been prepaid at 30 April 2012. Depreciation for the year on the non-current assets totaled $150 000 and this is to be split between the factory and the office in the ratio 2:1. Completed production is transferred at a mark-up on cost of 20%. Inventories were valued on 30 April 2012 as follows:             Raw materials                                     235                 work in progress                                320                      Finished goods (at transfer price)     438 REQUIRED Prepare a manufacturing account and income statement for the year ended 30 April

FINANCIAL ACCOUNTING
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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Asterix plc, a manufacturing company, has extracted the following balances from its books of account for the year ended 30 April 2012:

 

 

    $

Revenues

6 500

Purchases of raw materials

1 450

Carriage inwards

130

Carriage outwards

75

Direct labour

1 675

Factory overheads

1 350

Office overheads

1 025

Inventories at 1 May 2011:

 

Raw materials

140

Work in progress

165

Finished goods (at transfer price)

330

 

Additional information:

  • Factory overheads of $70 000 are accrued at 30 April 2012.
  • Office overheads of $35 000 have been prepaid at 30 April 2012.
  • Depreciation for the year on the non-current assets totaled $150 000 and this is to be split between the factory and the office in the ratio 2:1.
  • Completed production is transferred at a mark-up on cost of 20%.
  • Inventories were valued on 30 April 2012 as follows:

            Raw materials                                     235   

             work in progress                                320       

              Finished goods (at transfer price)     438

REQUIRED

  • Prepare a manufacturing account and income statement for the year ended 30 April
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