The following transactions relate to a dairy, converting milk to cheese, for the month of May.

Prepare ledger accounts which record the transactions.

1 May Bought 600 drums of milk from supplier on credit, invoiced price being £90,000 

1 May Bought cartons, cost £6,000 paid in cash 

2 May Returned to supplier one drum damaged in transit, £150 

3 May 500 drums of milk issued to cheesemaking department, cost £75,000 

4 May Issued two-thirds of cartons to cheesemaking department, £4,000 

14 May Paid cheesemakers’ wages £3,000 

14 May Paid wages for cleaning and hygiene £600 

16 May Paid rent, rates and electricity in respect of printing, £8,000, in cash 

28 May Paid cheesemakers’ wages £3,000 

28 May Paid wages for cleaning and hygiene £600 

31 May Transferred all production of cheese in cartons to finished goods inventory.

31 May No work-in-progress at end of month.

31 May Finished goods stock value at £6,000