James Limited manufactures bicycle parts but also purchases some parts for resale. The following information is...
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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 $ 63 000 17 000 16 480 Raw materials Work-in-progress Finished goods Sales of finished goods Purchases of finished goods Purchases of raw materials Carriage of finished goods Carriage of raw materials Machine operators' wages Factory supervisor's salary Administrative and sales wages Factory machinery at cost Office equipment at cost Provision for depreciation of factory machinery Provision for depreciation of office equipment Rent Light and heat $ 922 500 61 700 358 100 2 400 1 400 500 48 100 62 100 153 228 000 180 000 45 600 27 000 76 500 39 800 Additional information: A. B. Inventory at 2021 December 31: $ 62 800 Raw materials Work-in-progress Finished goods 15 100 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%. Prepare the Manufacturing Account for year ended 2021 December 31. Prepare the Income Statement for year ended 2021 December 31. (11 marks) (9 marks) 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 $ 63 000 17 000 16 480 Raw materials Work-in-progress Finished goods Sales of finished goods Purchases of finished goods Purchases of raw materials Carriage of finished goods Carriage of raw materials Machine operators' wages Factory supervisor's salary Administrative and sales wages Factory machinery at cost Office equipment at cost Provision for depreciation of factory machinery Provision for depreciation of office equipment Rent Light and heat $ 922 500 61 700 358 100 2 400 1 400 500 48 100 62 100 153 228 000 180 000 45 600 27 000 76 500 39 800 Additional information: A. B. Inventory at 2021 December 31: $ 62 800 Raw materials Work-in-progress Finished goods 15 100 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%. Prepare the Manufacturing Account for year ended 2021 December 31. Prepare the Income Statement for year ended 2021 December 31. (11 marks) (9 marks)
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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