Jorasmi Enterprise Trial Balance as at 31 December 2020 Particulars Debit RM Credit RM Inventory of raw materials 1 Jan 2020 21,000 Inventory of finished goods 1 Jan 2020 38,900 Work in progress 1 Jan 2020 13,500 Wages (direct RM180,000, factory indirect RM145,000) 325,000 Royalties 7,000 Carriage inwards (on raw materials) 3,500 Purchases of raw materials 370,000 Productive machinery (cost RM280,000) 230,000 Administration computers (cost RM20,000) 12,000 General factory expenses 31,000 Lighting 7,500 Factory power 13,700 Administration salaries 44,000 Sales representative salaries 30,000 Commission on sales 11,500 Rent 12,000 Insurance 4,200 General administration expenses 13,400 Bank charges 2,300 Discount allowed 4,800 Carriage outwards 5,900 Sales 1,000,000 Account receivable and accounts payable 142,300 64,000 Bank 16,800 Cash 1,500 Drawings 60,000 Capital as at 1 Jan 2020 357,800 TOTAL 1,421,800 1,421,800 Additional information: Inventory of raw materials RM24,000; inventory of finished goods RM40,000; work in progress RM15,000 Lighting, rent and insurance are to be apportioned; factory 5/6, administration 1/6 iii. Depreciation on productive machinery and administration computers at 10% per annum on cost 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.

Cornerstones of Financial Accounting

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ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

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Jorasmi Enterprise

Trial Balance as at 31 December 2020

Particulars	Debit RM	Credit RM
Inventory of raw materials 1 Jan 2020	21,000
Inventory of finished goods 1 Jan 2020	38,900
Work in progress 1 Jan 2020	13,500
Wages (direct RM180,000, factory indirect RM145,000)	325,000
Royalties	7,000
Carriage inwards (on raw materials)	3,500
Purchases of raw materials	370,000
Productive machinery (cost RM280,000)	230,000
Administration computers (cost RM20,000)	12,000
General factory expenses	31,000
Lighting	7,500
Factory power	13,700
Administration salaries	44,000
Sales representative salaries	30,000
Commission on sales	11,500
Rent	12,000
Insurance	4,200
General administration expenses	13,400
Bank charges	2,300
Discount allowed	4,800
Carriage outwards	5,900
Sales		1,000,000
Account receivable and accounts payable	142,300	64,000
Bank	16,800
Cash	1,500
Drawings	60,000
Capital as at 1 Jan 2020		357,800
TOTAL	1,421,800	1,421,800

Additional information:

Inventory of raw materials RM24,000; inventory of finished goods RM40,000; work in progress RM15,000
Lighting, rent and insurance are to be apportioned; factory 5/6, administration 1/6 iii. Depreciation on productive machinery and administration computers at 10% per annum on cost

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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