The following information has been extracted from the books of Meleki manufacturing company for the year to 30th September 2006: K Deprecation for the year to 30th September 2006: Factory equipment 21 000 Office equipment 12 000 Direct wages 120 000 Factory: insurance 3 000 Heat 45 000 Indirect materials 15 000 Power 60 000 Salaries 75 000 Finished goods at 1st October 2005 72 000 Office: electricity 55 000 General expenses 27 000 Postage and telephones 8 700 Salaries 210 000 Raw material purchases 600 000 Carriage inwards on raw materials 6 000 Raw material inventory at 1st October 2005 24 000 Advertising 6 000 Sales revenue 1 537 200 Work in progress at 1st October 2005 36 000 Notes: 1. At 30th September 2006, the following were on hand: K Raw materials 30 000 Work in progress 27 000 Finished goods 90 000 2. At 30th September 2006, there was an accrual for advertising of K3 000 and it was estimated that K4 500 had been paid in advance for electricity. These items had not been included in the books of account for the year to 30th September 2006. 3. Goods produced during the year are to be transferred to the Income Statement at a market value of K978 000. 4. For the purpose of inventory valuation, finished goods have been valued at cost. 

Required: 

i. Prepare the company's Manufacturing Account, Income Statement for the year to 30th September 2006. 

ii. Prepare an extract of the balance sheet as at 30th September, 2006.

Answer rating: 100% (QA)

1 Manufacturing Record to the year finished 30Sep2006 Raw material opening stock 24000 Add buys ww 6... View the full answer