The financial year end of Mendip Limited is 30 June. At 30 June 20X2, the following balances are available:

(i) The stocks at 30 June 20X2 were: raw materials £22,000; finished goods £35,600.

(ii) Salaries include £6,700 for directors’ fees.

(iii) Depreciation is to be charged at 10% on cost of plant and machinery.

Required 

Prepare a manufacturing, trading, profit and loss account for the year ending 30 June 20X2.

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Freehold Land and Buildings at cost Plant and machinery at cost Accumulated depreciation on plant and machinery Purchase of raw materials Sales Factory rates Factory heat and light Debtors Creditors Wages (including £15,700 for supervision) Direct factory expenses Selling expenses Office salaries and general expenses Bank General reserve Profit and loss account Stocks 1 July 20X1: Raw materials Finished goods Dividends paid: Preference shares Ordinary shares £ 143,000 105,000 23,000 130, 100 317,500 3,000 6,500 37,200 30,900 63,000 9,100 11,000 43,000 24,500 30,000 18,000 (Credit) 20,000 38,000 840 20,000