Task 6:

The following information has been prepared from the accounting records of Doubting Ltd for the six-months to 30

June 2010. The business uses a periodic inventory system.

Accounts receivable:

$

Balance 01/01/2010

178,300

Sales

1,846,500

Inventories 01/01/2010:

Raw Materials

95,940

Factory Supplies

8,440

Finished Goods

174,690

Work in Process

28,650

Factory insurances:

Prepaid 01/01/2010

2,920

Annual Premium paid 01/04/2010

12,360

Factory Plant & Equipment:

At cost 01/01/2010

343,800

Accumulated Depreciation 01/01/2010

154,710

Depreciation - Straight-line @ 10% p.a.

?

Accounts payable:

Balance 01/01/2010

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 01/01/2010

4,110

Payments

16,750

Other adjustments as at 30 June 2010:

$

Inventories

- Raw Materials

102,660

- Factory Supplies

9,070

- Finished Goods

171,890

- Work In Process

37,220

Annual Leave accrued - Factory

16,320

REQUIRED:

Prepare the following statements (appropriately classified) for the six-months ended 30 June 2010:

(a) Manufacturing statement and

(b) A Trading statement.