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    Manufacturing Account Worked Example Question 4

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    Roshan Ramkhalawon
    This document provides a worked example of manufacturing, income statement, and statement of financial position accounts for a company for the year ended 30 April 2010. It shows the calculation of costs of goods manufactured including raw materials, direct costs, and factory overheads. It then calculates profit for the year from revenues, cost of sales, other income and expenses. The statement of financial position provides values for non-current assets, current assets, capital, and current liabilities.

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    Manufacturing Account Worked Example Question 4

    Uploaded by

    Roshan Ramkhalawon
    473 views5 pages
    This document provides a worked example of manufacturing, income statement, and statement of financial position accounts for a company for the year ended 30 April 2010. It shows the calculation of costs of goods manufactured including raw materials, direct costs, and factory overheads. It then calculates profit for the year from revenues, cost of sales, other income and expenses. The statement of financial position provides values for non-current assets, current assets, capital, and current liabilities.

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    This document provides a worked example of manufacturing, income statement, and statement of financial position accounts for a company for the year ended 30 April 2010. It shows the calculation of costs of goods manufactured including raw materials, direct costs, and factory overheads. It then calculates profit for the year from revenues, cost of sales, other income and expenses. The statement of financial position provides values for non-current assets, current assets, capital, and current liabilities.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    473 views5 pages

    Manufacturing Account Worked Example Question 4

    Uploaded by

    Roshan Ramkhalawon
    This document provides a worked example of manufacturing, income statement, and statement of financial position accounts for a company for the year ended 30 April 2010. It shows the calculation of costs of goods manufactured including raw materials, direct costs, and factory overheads. It then calculates profit for the year from revenues, cost of sales, other income and expenses. The statement of financial position provides values for non-current assets, current assets, capital, and current liabilities.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    Manufacturing Account Worked Example

    Question 4 End of year

    IS
    MA
    SOF - 14 = 466
    Opening
    SOF
    SOF
    SOF

    + 700 = 1 800 - SOF


    + 238 = 618 - SOF
    SOF
    IS
    IS
    MA
    MA - 28 = 520
    IS
    IS + 28 = 222
    IS
    IS

    MA
    IS
    MA
    SOF
    MA & SOF
    IS & SOF
    MA & SOF

    Depreciation on Factory Non-Current Assets = 25% X 2 800 = $700 – MA


    Depreciation on office non-current assets = 25% X 952 = $238 - IS

    IS

    IS

    Closing provision for doubtful debt = 16 000 – 6 000 = 10 000 SOF


    Manufacturing Account for the year ended 30 April 2010
    $000 $000
    Cost of Raw Materials Consumed
    Opening inventory of Raw Materials 164
    Add Purchases of Raw Materials 2628
    2792
    Less closing inventory of Raw Materials (202)
    Cost of Raw Materials Consumed 2590
    Add Direct Cost
    Manufacturing wages 520
    Prime Cost 3110
    Add Factory Overheads
    Factory expenses 432
    Depreciation on factory non-current assets 700 1132
    4242
    Work-In-Progress
    Opening inventory work-in-progress 146
    Less closing inventory work-in-progress (128)
    Decrease in work-in-progress 18
    Cost of Production 4260
    Income Statement for the year ended 30 April 2010
    $000 $000
    Revenue 5684
    Less cost of sales
    Opening inventory finished goods 292
    Add cost of production 4260
    4552
    Less closing inventory finished goods (252) (4300)
    Gross profit 1384
    Add Other Incomes
    Rent received 48
    Decrease in provision for doubtful debt 6 54
    1438
    Less expenses
    Bank charges 12
    Bank interest 38
    Office expenses 348
    Office salaries 222
    Sales expenses 248
    Depreciation on office non-current assets 238
    Bad debts 14 (1120)
    Profit for the year 318
    Statement of financial position as at 30 April 2010
    COST DEP NBV
    Non-Current Assets $000 $000 $000
    Factory non-current assets 2800 1800 1000
    Office non-current assets 952 618 334
    3752 2418 1334
    Current Assets
    Closing inventories:
    - Raw materials 202
    - Finished goods 252
    - Work-in-Progress 128 582
    Trade receivables 466
    Less provision for doubtful debts (10) 456 1038
    TOTAL ASSETS 2372
    Capital and Liabilities
    Capital
    Capital at start 1338
    Add Profit for the year 318
    Capital at end 1656
    Current Liabilities
    Trade payables 426
    Bank overdraft 290 716
    TOTAL CAPITAL AND LIABILITIES 2372

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