E. Wilson is a manufacturer. His trial balance at 31 December 2013 is as follows:

Prepare the manufacturing account and income statement for the year ending 31 December 2013 and a statement of financial position as at that date. Give effect to the following adjustments: 1 Inventory at 31 December 2013: raw materials £14,510; finished goods £44,490. There is no work-in-progress. 2 Depreciate machinery £3,000; office equipment £600; van £1,200. 3 Manufacturing wages due but unpaid at 31 December 2013 £550; office rent prepaid £140.

Transcribed Image Text:

Delivery van expenses Lighting and heating: Factory Office Manufacturing wages General expenses: Factory Office Sales reps: commission Purchase of raw materials Rent: Factory Office Machinery (cost 40,000) Office equipment (cost 9,000) Office salaries Accounts receivable Accounts payable Bank Sales Van (cost 6,800) Inventory at 31 December 2012: Raw materials Finished goods Drawings Capital 1,760 7,220 1,490 72,100 8,100 1,940 11,688 57,210 6,100 2,700 28,600 8,200 17,740 34,200 16,142 6,200 13,260 41,300 24,200 360,150 44 9,400 194,800 155,950 360,150