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 Provision for depreciation of office equipment 27 000 Rent 76 500 Light and heat 39 800 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%. Requirements A. Prepare the Manufacturing Account for year ended 2021 December 31. B. Prepare the Income Statement for year ended 2021
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
Provision for depreciation of office equipment 27 000
Rent 76 500
Light and heat 39 800
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
iv. Office equipment is to be depreciated by the
Requirements
A. Prepare the Manufacturing Account for year ended 2021 December 31.
B. Prepare the Income Statement for year ended 2021 December 31.
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