These balances and totals are from Mark and Brake Ltd who manufactures sport equipment: Inventory 1 March 20x7 Raw material 14,400 Work in progress (WIP) 9,500 Finished goods 52,000 Delivery vehicles at cost 19,000 Plant and machinery at cost 120,000 Office furniture at cost 6,000 Bank 11,400 Accumulated depreciation on 1 March 20x7 Delivery vehicles 3,800 Plant and machinery 36,000 Office furniture 1,200 Water and electricity Factory 6,200 Office 320 Purchase of raw material 144,000 Customs duty on raw material 3,400 Freight in on raw material 7,200 Insurance paid: Factory 2,520 Office 840 Insurance paid in advance 1 March 20x7 Factory 960 Office 260 Allowance for bad debts on 1 March 20x7 830 Accounts receivable 16,600 Factory wages 73,000 Indirect labour 9,600 Salaries Sale personnel 17,400 Office personnel 11,600 Factory overheads 4,560 Stationery 760 Sales 260,400 Additional information:  Inventory on hand 28 February 20x8: - Raw material N$13,400 - Work - in - progress N$10,700 - Finished goods N$60,000  Depreciation should be provided for on the reducing balance method: - Delivery vehicles 20% p.a - Plant and Machinery 15% p.a - Office furniture 5% p.a  Insurance is payable one year in advance on 01 July.  Finished goods are transferred from the factory to the sales department- at production cost plus 25%. 11 

YOU ARE REQUIRED TO: 

1. Prepare the statement of cost of goods manufactured for the year ended 28 February 20x8 (10 marks) 

2. Prepare the statement of profit or loss and other comprehensive income for the year ended 28 February 20x8 (10 marks) 3. Prepare the extracted statement of financial position as at 28 February 20x8

Answer rating: 100% (QA)

WORKIN PROCESS INVENTORY Debit Credit Beginning Work in process 9500 Raw material inv... View the full answer