w materials purchases 169 Manufacturing wages 322 Factory overhea
Trinidad Manufacturing Limited extracted the following balances from the books of account at the end of the company's financial year, 30 June 2006:
$’000
|
Raw materials purchases |
169 |
|
Manufacturing wages |
322 |
|
Factory overhead Factory |
140 |
|
Factory light and power |
168 |
|
Administrative expenses |
158 |
|
Sales |
1 860 |
|
Debtors |
50 |
|
Creditors |
218 |
|
Bank |
150 |
|
Selling. & distribution expenses |
98 |
|
Freehold buildings - at valuation - provision for |
300 60 |
|
Plan: & machinery - at cost - provision for depreciation |
180 40 |
|
Motor vehicles - at cost - provision for depreciation |
120 75 |
|
Inventory at cost at 1 July 2005 |
|
|
- Raw Materials |
26 |
|
- Work in Progress |
82 |
|
- Finished Goods |
126 |
|
|
|
|
Additional Information |
|
|
(a) Value of inventory at cost at 30 June 2006 |
|
|
- Raw Materials |
49 |
|
- Work in progress |
104 |
|
- Finished goods |
78 |
- Work in Progress contains a proportion 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 vehicle are only used for delivering finished goods to customers.
- Provision for depreciation is as follows:
Freehold buildings: 5% on the revalued amount
Plant & Machinery: 10% on the cost at year-end
Motor Vehicles: 10% on the cost at year-end
- Administrative expenses prepaid at 30 June 2006 amounted to $6,000
- Provision for
bad debts is to be provided at 5% of debtors at 30 June 2006.
Cost of goods manufactured shows total costs incurred on manufacturing and production of goods.
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