Idayah Limited is a manufacturing company. The following balances were extracted from its records on 31st December 2014. Stock on 01/01/2014 Le Raw materials-------------------56,000 Work-in-progress---------------60,000 Finished goods-----------------80,000 Purchases of raw materials-150,000 Carriage of raw materials------7500 Manufacturing wages paid---16,500 Factory wages accrued--------4,000 Direct factory expenses------11,000 Fuel for factory expenses---15,400 Depreciation of factory equipment---12,000 Sales of finished goods------500,000 Carriage expenses-------------7,600 General office goods----------3,800 Office Salaries------------------19,200 Stock: 31/12/2014 Raw materials-----------------40,000 Work-in-progress -------------64,000 Finished goods----------------72,000 You are required to prepare manufacturing, Trading, and Profit and Account for the year ended 31st December 2014
Explanation
Idayah Limited Manufacturing, Trading, and Profit and Account for the year ended 31st December 2014 Le Le Raw material value of goods transferred 2251,240 Opening stock 56,000 Add: purchases 150,000 Carriage inwards 7,500 157,000 213,500 Less: closing stock 40,000 173,000 +manufacturing wages 16,500 Add accruals 4,000 20,000 Direct expenses 11,400 prime cost 205,400 +factory overhead Fuel 15,000 Dep. of equipment 12,000 27,000 232,400 Add opening WIP 60,000 292,000 Less closing WIP 64,000 factory cost of prod 228,400 Manufaturing prft c/d 22,840 251,240 251,240
