The following is an extract of the Trial balance as at 30 June of Branson manufacturing, after all transactions for the year have been posted but before balance day adjustments.

                        Trial balance as at 30 June 2018

                                                                                    $                                  $

Finished goods inventory 1 July 2017                        20,000

Sales                                                                                                                210,000

Direct material inventory 1 July 2017                       10,000

Purchases of direct material                          49,000

Freight inwards on direct material                 1,300

Direct wages                                                               26,000

Factory rent                                                                 5,400

Indirect wages                                                 3,050

Heating, light & power-Factory                                  1,950

Other factory costs                                                      4,870

Advertising                                                                   3,200

Other marketing costs                                                 3,100

General and administrative expenses                       50,000

Financial expenses                                                      1,300

At 30 June 2018 the following need adjusting:

            Direct wages accrued                          1,500

            Prepaid factory rent                                200

            Depreciation on factory equipment    2,690

Physical stock takesat 30 June 2018 showed:

            Direct material on hand                                 12,100

            Finished goods inventory on hand                 18,700                                                  

                                                                                    210,000                        210,000

 

1. Prepare the journal entries necessary to complete the manufacturing account in the ledger for the year ended 30 June 2018
2. Prepare the manufacturing account in the ledger for the year ended 30 June 2018.
3. Prepare a manufacturing statement for the year ended 30 June 2018.
4. Prepare a trading statement for the year ended 30 June 2018.

Answer rating: 100% (QA)

Lets start by preparing the journal entries necessary to complete the manufacturing account for the ... View the full answer