For the year ended 31st December 2022, Andersons' business sales turnover was 283,500 producing a gross...

 

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For the year ended 31st December 2022, Andersons' business sales turnover was £283,500 producing a gross profit of £70,700 (gross profit margin = 24.94%) Other relevant information: Direct materials Work-in-progress Finished goods Opening inventory £ 3,000 6,000 12,000 Closing inventory £ 3,200 6,500 14,000 . The total cost of raw materials consumed was £27,800. • The cost of direct labour was £90,000 and total production prime cost was £135,800 (after deducting direct expenses). • Indirect production overheads were £60,000 and machinery depreciation was £19,500. Required: a. Prepare the manufacturing account of Andersons Ltd for the year ended 31st December 2022 (Show all workings). 15 marks b. Prepare the trading account of Andersons Ltd for the year ended 31st December 2022 to reconcile your results and the gross profit (and margin) values provided above (Show all workings). For the year ended 31st December 2022, Andersons' business sales turnover was £283,500 producing a gross profit of £70,700 (gross profit margin = 24.94%) Other relevant information: Direct materials Work-in-progress Finished goods Opening inventory £ 3,000 6,000 12,000 Closing inventory £ 3,200 6,500 14,000 . The total cost of raw materials consumed was £27,800. • The cost of direct labour was £90,000 and total production prime cost was £135,800 (after deducting direct expenses). • Indirect production overheads were £60,000 and machinery depreciation was £19,500. Required: a. Prepare the manufacturing account of Andersons Ltd for the year ended 31st December 2022 (Show all workings). 15 marks b. Prepare the trading account of Andersons Ltd for the year ended 31st December 2022 to reconcile your results and the gross profit (and margin) values provided above (Show all workings).

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a Manufacturing account of Andersons Ltd for the year ended 31st December 2022 Particulars Amount ... View the full answer