Asterix plc, a manufacturing company, has extracted the following balances from its books of account for the year ended 30 April 2012: $ Revenues 6 500 Purchases of raw materials 1 450 Carriage inwards 130 Carriage outwards 75 Direct labour 1 675 Factory overheads 1 350 Office overheads 1 025 Inventories at 1 May 2011: Raw materials 140 Work in progress 165 Finished goods (at transfer price) 330 Additional information: Factory overheads of $70 000 are accrued at 30 April 2012. Office overheads of $35 000 have been prepaid at 30 April 2012. Depreciation for the year on the non-current assets totaled $150 000 and this is to be split between the factory and the office in the ratio 2:1. Completed production is transferred at a mark-up on cost of 20%. Inventories were valued on 30 April 2012 as follows: Raw materials 235 work in progress 320 Finished goods (at transfer price) 438 REQUIRED Prepare a manufacturing account and income statement for the year ended 30 April
Asterix plc, a manufacturing company, has extracted the following balances from its books of account for the year ended 30 April 2012: $ Revenues 6 500 Purchases of raw materials 1 450 Carriage inwards 130 Carriage outwards 75 Direct labour 1 675 Factory overheads 1 350 Office overheads 1 025 Inventories at 1 May 2011: Raw materials 140 Work in progress 165 Finished goods (at transfer price) 330 Additional information: Factory overheads of $70 000 are accrued at 30 April 2012. Office overheads of $35 000 have been prepaid at 30 April 2012. Depreciation for the year on the non-current assets totaled $150 000 and this is to be split between the factory and the office in the ratio 2:1. Completed production is transferred at a mark-up on cost of 20%. Inventories were valued on 30 April 2012 as follows: Raw materials 235 work in progress 320 Finished goods (at transfer price) 438 REQUIRED Prepare a manufacturing account and income statement for the year ended 30 April
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter1: Introduction To Cost Accounting
Section: Chapter Questions
Problem 9P: Glasson Manufacturing Co. produces only one product. You have obtained the following information...
Related questions
Question
Asterix plc, a manufacturing company, has extracted the following balances from its books of account for the year ended 30 April 2012:
|
$ |
Revenues |
6 500 |
Purchases of raw materials |
1 450 |
Carriage inwards |
130 |
Carriage outwards |
75 |
Direct labour |
1 675 |
Factory overheads |
1 350 |
Office overheads |
1 025 |
Inventories at 1 May 2011: |
|
Raw materials |
140 |
Work in progress |
165 |
Finished goods (at transfer price) |
330 |
Additional information:
- Factory overheads of $70 000 are accrued at 30 April 2012.
- Office overheads of $35 000 have been prepaid at 30 April 2012.
Depreciation for the year on the non-current assets totaled $150 000 and this is to be split between the factory and the office in the ratio 2:1.- Completed production is transferred at a mark-up on cost of 20%.
- Inventories were valued on 30 April 2012 as follows:
Raw materials 235
work in progress 320
Finished goods (at transfer price) 438
REQUIRED
- Prepare a manufacturing account and income statement for the year ended 30 April
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,