Case study 3

The following information has been prepared from the accounting records of Double Ltd for the six-months to 30 June 2018. The business uses a periodic inventory system.

Accounts receivable			$
	Balance 01/01/2018		178,300
	Sales		1,846,500
Inventories 01/01/2018
	Raw Materials		95,940
	Factory Supplies		8,440
	Finished Goods		174,690
	Work in Process		28,650
Factory insurances:
	Prepaid 01/01/2018		2,920
	Annual Premium paid 01/04/2018		12,360
Factory Plant & Equipment:
	At cost 01/01/2018		343,800
	Accumulated Depreciation 01/01/2018		154,710
	Depreciation - Straight-line @ 10% p.a.		?
Accounts payable:
	Balance 01/01/2018		45,180
	Purchases	- Raw materials	442,230
		- Factory supplies	18,620
		- Finished goods	38,730
	Payments		317,840
Freight Inwards:
	Raw materials		15,450
	Factory supplies		1,790
Freight outwards			50,060
Wages and salaries:
	Direct Labour		154,680
	Indirect Labour		78,030
Factory Maintenance			11,430
Factory Lighting and Power:
	Accrued 01/01/2018		4,110
	Payments		16,750
Other adjustments as at 30 June 2018:
	Inventories	- Raw Materials	102,660
		- Factory Supplies	9,070
		- Finished Goods	171,890
		- Work in Process	37,220
	Annual Leave accrued - Factory		16,320

 

Task 3                 

Prepare the following statements (appropriately classified) for the six-months ended 30 June 2014:

• Manufacturing statement and
• Trading statement.

Answer rating: 100% (QA)

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