W. Wagner, a manufacturer, provided the following information for the year ended 31 August 20X3: ........................................................................................
Question:
W. Wagner, a manufacturer, provided the following information for the year ended 31 August 20X3:
........................................................................................ £
Inventories at 1 September 20X2
- Row materials ............................................. 25,000
- Work-in-progress......................................... 15,900
- Finished goods ........................................... 26,600
Row materials purchased ................................ 176,600
Factory general expenses ................................. 14,800
Direct wages ................................................ 86,900
Repairs to plant and machinery ............................ 9,900
Factory lighting and heating .............................. 20,010
Carriage inwards ............................................. 1,910
Carriage outwards .......................................... 2,500
Sales revenue.............................................. 320,000
Raw materials returned ..................................... 7.800
Factory maintenance wages .............................. 19.000
Administrative expenses .................................. 30,000
Selling and distribution expenses ....................... 15,100
Plant and machinery at cost ............................ 178,000
Freehold land and buildings at cost ................... 160,000
Provision for depreciation on plant
and machinery (1/9/X2) ....................................80,000
Additional information
1. Amounts owing at 31 August 20X3:
.................................................. £
Direct wages ............................... 4,800
Factory heating and lighting ............ 1,500
2. Depreciation on plant and machinery is to be provided at 10 per cent per annum on cost. There were no sales or purchases of plant and machinery during the year.
3. All manufactured goods are transferred to the warehouse at factory cost plus 10 per cent.
4. Inventories at 31 August 20X3:
.............................................................. £
Raw materials ........................... 30,000
Work in progress ....................... 17,800
Finished goods.......................... 35,090
The raw materials are valued at cost, the work-in-progress at factory cost, while the inventory of finished goods is valued at the factory transfer price.
Required
a. A manufacturing account for the year ended 31 August 20X3.
b. A statement of profit and loss for the year ended 31 August 20X3?
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Step by Step Answer:
Introduction To Financial Accounting
ISBN: 978-0077138448
7th edition
Authors: Anne Marie Ward, Andrew Thomas