TUTORIAL QUESTIONS ON MANUFACTURING QUESTION 1 Mekar Enterprise, a motorcycle manufacturer, provided the following trial balance for the year ended 31 December 2014. Debit RM Credit RM 500,000 200,000 215,000 161.800 32.000 19.400 27,600 1,506,200 Purchases: Raw materials Finished goods Direct labour Direct factory expenses Indirect factory expenses Factory Maintenance Machine repairs Sales Inventory at 1 January 2013 Raw materials Work in progress Finished goods Indirect materials Factory heating and lighting Factory rent Return inwards Administration expenses Selling and Distribution expenses Accounts receivable Accounts payable Plant and machinery at cost Delivery van at cost Accumulated depreciation at 1 January 2014: Plant and machinery Delivery van Allowance for unrealised profit at 1 January 2014 Capital 130,000 105,000 96,000 29,000 38.000 23,000 50,000 50,000 72.900 178,000 232.300 500,000 200,000 150,000 80.000 9.600 659,200 2,627,700 2,627,700 Additional information: 1. Inventories as at 31 December 2014 are as follows: Raw materials (Cost) Work in progress (Production cost) Finished goods RM 102,800 82,000 107,300 2 The raw material purchases included a charge for carriage inward in relation to the finished product amounted to RM4,750. 3. One quarter of the administration expenses are to be allocated to the factory, 4. The company depreciates its plant and machinery at RM35,000 and delivery van at 20,000 5. Finished goods manufactured during the accounting period are transferred to Statement of Profit or Loss at production cost plus 10%. Required: a Prepare the Manufacturing Account for the year ended 31 December 2014. (12 marks) b. Prepare the Statement of Profit or Loss for the year ended 31 December 2014. (8 marks)