Trinidad Manufacturing Limited extracted the following balances from the books of account at the end of the company's financial year, 30 June 2016: $'000 Raw materials purchases Manufacturing wages Factory overhead Factory light and power Administrative expenses 169 322 140 168 158 Sales 1 1 860 Debtors Creditors 50 218 Bank 150 Selling and distribution expenses Freehold buildings 98 at valuation 300 provision for depreciation 60 Plant and machinery - at cost 180 provision for depreciation 40 Motor vehicles at cost 120 provision for depreciation 75 Inventory at cost at 1 July 2015: Raw materials 26 Work in progress Finished goods 82 126 Additional information a) Value of inventory at cost at 30 June 2016: Raw materials 49 Work in progress Finished goods 104 78 b) Work in progress contains a portion of manufacturing expenses. c) Finished goods are valued at manufacturing cost. d) Freehold buildings are utilized on the basis of 3/5 for the factory and 2/5 for the office. e) Motor vehicles are only used for delivering finished goods to customers. f) Provision for depreciation is as follows: Freehold buildings: 5% on the revalued amount • Plant and machinery: 10% on cost at year end • Motor vehicles: 10% on cost at year end g) Administrative expenses prepaid at 30 June 2006 amounted to $6000 h) Provision f bad debts is to be provided at 5% of debtors at 30 June 2006. Required: Prepare a Cost of Goods Manufactured Schedule and an Income Statement for the year ended 30 June 2016.

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 6MCQ: Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense...