The Coconut Shell is a manufacturer of a coconut ginger cake . The following details were obtained at as December 31, 2016 DR CR Purchase of raw materials 145000 Purchase of indirect materials 52000 Land and building 1,200,000 motorvehicle at cost 300,000 machinery & equipment 400,000 provision for depreciation : Building 40,000 Motor vehicle 35000 machinery & equipment 20000 admin wages 60,000 office expense 25000 provision for unrealised profit 4500 debtors 40,000 creditors 34000 loan 500,000 direct wages 35,000 indirect factory wages 50,000 direct expenses 12,000 bank 31,800 capital 400,000 drawing 20,500 provision for bad debt 6,200 utilities 32,000 sales 1,500,000 ret.outward on raw materials 13,000 insurance 34,000 telephone 10,000 factory general expenses 35,000 commission received 25,000 opening stock of raw materials 34,000 opening stock of indirect material 45,000 opening stock of work in progress 18,000 opening stock of finished goods 50,000 return inwards 12000 2,609,500 2,609,500 End of year notes The following items of closing stock were recorded : Raw Material 41,000 Indirect Material 28,000 Work in Progress 22,000 Finished Goods 69,600 Provide for depreciation for non-current assets as follows : ASSET RATE METHOD Building 5% Straight Line Motor Vehicle 5% Straight Line Machinery and Equipment 10% Reducing Balance Adjustments are to be made to the following items of expenses and revenue : Utilities Owing by 8,000 Insurance Prepaid by 4,000 Telephone owing by 6,000 Commission Prepaid by 5,000 Appropriation of Expenses ITEMS FACTORY OFFICE Utilities 70% 30% Telephone 60% 40% Insurance 40% 60% Depn Building 80% 20% Depn Machinery & Equipment 50% 50% Depn of Motor Vehicle 40% 60% The good produced are to be marked up by 20% before transferring to the sales department Required Prepare the Manufacturing Account for the year ending December 31, 2016
The Coconut Shell is a manufacturer of a coconut ginger cake . The following details were obtained at as December 31, 2016
DR CR
Purchase of raw materials 145000
Purchase of indirect materials 52000
Land and building 1,200,000
motorvehicle at cost 300,000
machinery & equipment 400,000
provision for
Building 40,000
Motor vehicle 35000
machinery & equipment 20000
admin wages 60,000
office expense 25000
provision for unrealised profit 4500
debtors 40,000
creditors 34000
loan 500,000
direct wages 35,000
indirect factory wages 50,000
direct expenses 12,000
bank 31,800
capital 400,000
drawing 20,500
provision for
utilities 32,000
sales 1,500,000
ret.outward on raw materials 13,000
insurance 34,000
telephone 10,000
factory general expenses 35,000
commission received 25,000
opening stock of raw materials 34,000
opening stock of indirect material 45,000
opening stock of work in progress 18,000
opening stock of finished goods 50,000
return inwards 12000
2,609,500 2,609,500
End of year notes
The following items of closing stock were recorded :
Raw Material 41,000
Indirect Material 28,000
Work in Progress 22,000
Finished Goods 69,600
Provide for depreciation for non-current assets as follows :
|
ASSET |
RATE |
METHOD |
|
Building |
5% |
Straight Line |
|
Motor Vehicle |
5% |
Straight Line |
|
Machinery and Equipment |
10% |
Reducing Balance |
Adjustments are to be made to the following items of expenses and revenue :
Utilities Owing by 8,000
Insurance Prepaid by 4,000
Telephone owing by 6,000
Commission Prepaid by 5,000
Appropriation of Expenses
|
ITEMS |
FACTORY |
OFFICE |
|
Utilities |
70% |
30% |
|
Telephone |
60% |
40% |
|
Insurance |
40% |
60% |
|
Depn Building |
80% |
20% |
|
Depn Machinery & Equipment |
50% |
50% |
|
Depn of Motor Vehicle |
40% |
60% |
The good produced are to be marked up by 20% before transferring to the sales department
Required
Prepare the Manufacturing Account for the year ending December 31, 2016
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