Jojomat Ltd owns a small business making and selling children’s toys. The following trial balance was extracted from her books on 31 December 2020: Particulars Debit RM Credit RM Capital 15,000 Drawings 2,000 Sales 90,000 Inventory at 1 January 2020: Raw materials Finished goods 3,400 6,100 Purchased of raw materials 18,000 Carriage inwards 800 Factory wages 18,500 Office salaries 16,900 Jojomat : Salary and expenses 10,400 General expenses: Factory Office 1,200 750 Lighting 2,500 Rent 3,750 Insurance 950 Advertising 1,400 Bad debts 650 Discount received 1,600 Prepared by: Puan Siti Nor Junita Mohd Radzi Carriage outwards 375 Plant and machinery, a cost less depreciation 9,100 Car, at cost less depreciation 4,200 Bank 3,600 Cash in hand 325 Account receivable and account payable 7,700 6,000 TOTAL 112,600 112,600 Additional information: Inventory at 31 December 2020: Raw materials RM2,900 Finished goods RM8,200 Depreciation for the year is to be charged as follows: Plant and machinery RM1,500 Car RM500 iii. At 31 December 2020 insurance paid in advance was RM150 and office general expenses unpaid were RM75 Lighting and rent are to be apportioned :4/5 Factory, 1/5 Office v. Insurance are to be apportioned: ¾ Factory ¼ Office Jojo is the business sales person and her salary and expenses are to be treated as a selling expense. She has sole use of a business car. Required: a) Prepare statement of cost production for the year ended 31 December 2020. b) Prepare statement of comprehensive income for the year ended 31 December 2020. c) Prepare statement of financial position as at 31 December 2020.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

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Jojomat Ltd owns a small business making and selling children’s toys. The following trial balance was extracted from her books on 31 December 2020:

Particulars	Debit RM	Credit RM
Capital		15,000
Drawings	2,000
Sales		90,000
Inventory at 1 January 2020: Raw materials Finished goods	3,400 6,100
Purchased of raw materials	18,000
Carriage inwards	800
Factory wages	18,500
Office salaries	16,900
Jojomat : Salary and expenses	10,400
General expenses: Factory Office	1,200 750
Lighting	2,500
Rent	3,750
Insurance	950
Advertising	1,400
Bad debts	650
Discount received		1,600

Prepared by: Puan Siti Nor Junita Mohd Radzi

Carriage outwards	375
Plant and machinery, a cost less depreciation	9,100
Car, at cost less depreciation	4,200
Bank	3,600
Cash in hand	325
Account receivable and account payable	7,700	6,000
TOTAL	112,600	112,600

Additional information:

Inventory at 31 December 2020:
Raw materials RM2,900
Finished goods RM8,200
Depreciation for the year is to be charged as follows:
Plant and machinery RM1,500
Car RM500

iii. At 31 December 2020 insurance paid in advance was RM150 and office general expenses unpaid were RM75

Lighting and rent are to be apportioned :4/5 Factory, 1/5 Office v. Insurance are to be apportioned: ¾ Factory ¼ Office
Jojo is the business sales person and her salary and expenses are to be treated as a selling expense. She has sole use of a business car.

Required:

a) Prepare statement of cost production for the year ended 31 December 2020. b) Prepare statement of comprehensive income for the year ended 31 December 2020. c) Prepare statement of financial position as at 31 December 2020.

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