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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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 |
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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