Trinidad Manufacturing Limited extracted the following balances from the books of account at the end of the company's financial year, 30 June 2006:$’000Raw materials purchases169Manufacturing wages322Factory overhead Factory140Factory light and power168Administrative expenses158Sales1 860Debtors50Creditors218Bank150Selling. & distribution expenses98Freehold buildings - at valuation- provision for depreciation30060Plan: & machinery - at cost- provision for depreciation18040Motor vehicles - at cost- provision for depreciation12075Inventory at cost at 1 July 2005 - Raw Materials26 - Work in Progress82 - Finished Goods126 Additional Information (a) Value of inventory at cost at 30 June 2006 - Raw Materials49 - Work in progress104 - Finished goods78Work in Progress contains a proportion of manufacturing expensesFinished goods are valued at manufacturing cost.Freehold buildings are utilized on the basis of 3/5 for the factory and 2/5 for the officeMotor vehicle are only used for delivering finished goods to customers.Provision for depreciation is as follows: Freehold buildings: 5% on the revalued amount Plant & Machinery: 10% on the cost at year-end Motor Vehicles: 10% on the cost at year-endAdministrative expenses prepaid at 30 June 2006 amounted to $6,000Provision for bad debts is to be provided at 5% of debtors at 30 June 2006.

Cost of goods manufactured shows total costs incurred on manufacturing and production of goods.

Answered: w materials purchases 169…

3rd Edition

ISBN:9781337788281

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

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

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

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Question

Trinidad Manufacturing Limited extracted the following balances from the books of account at the end of the company's financial year, 30 June 2006:

$’000

Raw materials purchases	169
Manufacturing wages	322
Factory overhead Factory	140
Factory light and power	168
Administrative expenses	158
Sales	1 860
Debtors	50
Creditors	218
Bank	150
Selling. & distribution expenses	98
Freehold buildings - at valuation - provision for depreciation	300 60
Plan: & machinery - at cost - provision for depreciation	180 40
Motor vehicles - at cost - provision for depreciation	120 75
Inventory at cost at 1 July 2005
- Raw Materials	26
- Work in Progress	82
- Finished Goods	126

Additional Information
(a) Value of inventory at cost at 30 June 2006
- Raw Materials	49
- Work in progress	104
- Finished goods	78

Work in Progress contains a proportion of manufacturing expenses
Finished goods are valued at manufacturing cost.
Freehold buildings are utilized on the basis of 3/5 for the factory and 2/5 for the office
Motor vehicle are only used for delivering finished goods to customers.
Provision for depreciation is as follows:

Freehold buildings: 5% on the revalued amount

Plant & Machinery: 10% on the cost at year-end

Motor Vehicles: 10% on the cost at year-end