Navin plc manufactures cricket bats. The following information is available for the year ended 31 January 2015.

Additional information: 

• Inventories at 31 January 2015 were (in $000): raw materials $65; work in progress $22; finished goods $146. 

• Sixty percent of the factory wages are direct and the rest are indirect. 

• Seventy-five percent of both the heating and lighting and rent and rates are to be allocated to the factory and the rest to the office. 

• Eighty percent of the power costs are to be allocated to the factory and 20 percent to the office. 

• Depreciation is to be charged on the machinery at 20 percent per annum using the straight-line method. 

• Depreciation is to be charged on the office equipment at 10 percent per annum using the straight-line method. 

Prepare: 

a. The manufacturing account for the year ended 31 January 2015. 

b. The income statement for the year ended 31 January 2015. 

c. An extract from the statement of financial position as at 31 January 2015 to show the inventories.

Transcribed Image Text:

$000 Carriage inwards on raw materials 15 Carriage outwards 21 Factory wages 460 Heating and lighting 68 Inventories at 1 February 2014 raw materials 42 work in progress 19 finished goods 132 Machinery at cost 340 Office equipment at cost 90 Office salaries 245 Power 110 Purchase of raw materials 567 Rent and rates 84 Revenue 1 846