Trinidad Manufacturing Limited extracted the following balances from the books of account at the end of the company’s financial year, 30 June 2016: $’000 Raw materials purchases 169 Manufacturing wages 322 Factory overhead 140 Factory light and power 168 Administrative expenses 158 Sales 1 860 Debtors 50 Creditors 218 Bank 150 Selling and distribution expenses 98 Freehold buildings - at valuation 300 provision for depreciation 60 Plant and machinery - at cost 180 provision for depreciation 40 Motor vehicles - at cost 120 provision for depreciation 75 Inventory at cost at 1 July 2015: Raw materials 26 Work in progress 82 Finished goods 126 Additional information Value of inventory at cost at 30 June 2016: Raw materials 49 Work in progress 104 Finished goods 78 Work in progress contains a portion of manufacturing expenses. Finished goods are valued at manufacturing cost. Freehold buildings are utilized on the basis of 3/5 for the factory and 2/5 for the office. Motor vehicles are only used for delivering finished goods to customers. Provision for depreciation is as follows: Freehold buildings: 5% on the revalued amount Plant and machinery: 10% on cost at year end Motor vehicles: 10% on cost at year end Administrative expenses prepaid at 30 June 2006 amounted to $6000 Provision for bad debts is to be provided at 5% of debtors at 30 June 2006. Required: Prepare a Cost of Goods Manufactured Schedule and an Income Statement for the year ended 30 June 2016.
Trinidad Manufacturing Limited extracted the following balances from the books of account at the end of the company’s financial year, 30 June 2016:
$’000
Raw materials purchases 169
Manufacturing wages 322
Factory
Factory light and power 168
Administrative expenses 158
Sales 1 860
Debtors 50
Creditors 218
Bank 150
Selling and distribution expenses 98
Freehold buildings - at valuation 300
- provision for
depreciation 60
Plant and machinery - at cost 180
- provision for depreciation 40
Motor vehicles - at cost 120
- provision for depreciation 75
Inventory at cost at 1 July 2015:
Raw materials 26
Work in progress 82
Finished goods 126
Additional information
- Value of inventory at cost at 30 June 2016:
Raw materials 49
Work in progress 104
Finished goods 78
- Work in progress contains a portion of manufacturing expenses.
- Finished goods are valued at
manufacturing cost . - Freehold buildings are utilized on the basis of 3/5 for the factory and 2/5 for the office.
- Motor vehicles are only used for delivering finished goods to customers.
- Provision for depreciation is as follows:
- Freehold buildings: 5% on the revalued amount
- Plant and machinery: 10% on cost at year end
- Motor vehicles: 10% on cost at year end
- Administrative expenses prepaid at 30 June 2006 amounted to $6000
- Provision for
bad debts is to be provided at 5% of debtors at 30 June 2006.
Required:
Prepare a Cost of Goods Manufactured Schedule and an Income Statement for the year ended 30 June 2016.
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