The following information taken from Jejai Limited: Particulars Debit RM Credit RM Purchase of raw materials 258,000 Fuel and light 21,000 Administration salaries 17,000 Factory wages 59,000 Carriage outwards 4,000 Rent and business rates 21,000 Sales 482,000 Return inward 7,000 General office expenses 9,000 Repairs to plant and machinery 9,000 Inventory at 1 January 2020: Raw materials Work in process Finished goods 21,000 14,000 23,000 Sundry accounts payable 37,000 Capital 457,000 Freehold premises 410,000 Plant and machinery 80,000 Accounts receivable 20,000 Accumulated provision for depreciation on plant and machinery 8,000 Cost in hand 11,000 TOTAL 984,000 984,000 Additional information: Inventory in hand at 31 December 2020: Raw materials RM25,000 Work in process RM11,000 Finished goods RM26,000 Depreciation of 10% on plant and machinery using the straight-line method iii. 80% of fuel and light and 75% of rent and rates to be charged to manufacturing iv. Provision for doubtful debts: 5% of sundry accounts receivable. v. RM4,000 outstanding for fuel and light Rent and business rates paid in advance: RM5,000 vii. Market value of finished goods: RM382,000 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.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 58P: Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners...

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The following information taken from Jejai Limited:

Particulars	Debit RM	Credit RM
Purchase of raw materials	258,000
Fuel and light	21,000
Administration salaries	17,000
Factory wages	59,000
Carriage outwards	4,000
Rent and business rates	21,000
Sales		482,000
Return inward	7,000
General office expenses	9,000
Repairs to plant and machinery	9,000
Inventory at 1 January 2020: Raw materials Work in process Finished goods	21,000 14,000 23,000
Sundry accounts payable		37,000
Capital		457,000
Freehold premises	410,000
Plant and machinery	80,000
Accounts receivable	20,000
Accumulated provision for depreciation on plant and machinery		8,000
Cost in hand	11,000
TOTAL	984,000	984,000

Additional information:

Inventory in hand at 31 December 2020:
Raw materials RM25,000
Work in process RM11,000
Finished goods RM26,000
Depreciation of 10% on plant and machinery using the straight-line method iii. 80% of fuel and light and 75% of rent and rates to be charged to manufacturing iv. Provision for doubtful debts: 5% of sundry accounts receivable. v. RM4,000 outstanding for fuel and light
Rent and business rates paid in advance: RM5,000

vii. Market value of finished goods: RM382,000

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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