Additional information: 1. Inventory on 31 March 2021: Raw materials RM 19,400 Work in progress RM 16,400 Finished goods RM 31,400 2. Utilities and insurance expense are to be apportioned between factory and office in the ratio 2:1. 3. Only 40% of the rent expense and 50% of the general expense apply to factory operations, the remaining amounts should be charged to administrative activities. 4. Accrued payments: Factory direct wages RM 2,500 Utilities RM 1,800 5. Depreciation for the year is to be charged as follows:. Plant and machinery 10% on cost Office equipment 5% on reducing balance method Required : a) Prepare statement of cost of goods manufactured for the year ended 31 March 2021. b) Prepare statement of profit or loss for the year ended 31 March 2021. c) Prepare statement of financial position as at 31 March 2021.
Additional information: 1. Inventory on 31 March 2021: Raw materials RM 19,400 Work in progress RM 16,400 Finished goods RM 31,400 2. Utilities and insurance expense are to be apportioned between factory and office in the ratio 2:1. 3. Only 40% of the rent expense and 50% of the general expense apply to factory operations, the remaining amounts should be charged to administrative activities. 4. Accrued payments: Factory direct wages RM 2,500 Utilities RM 1,800 5. Depreciation for the year is to be charged as follows:. Plant and machinery 10% on cost Office equipment 5% on reducing balance method Required : a) Prepare statement of cost of goods manufactured for the year ended 31 March 2021. b) Prepare statement of profit or loss for the year ended 31 March 2021. c) Prepare statement of financial position as at 31 March 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Additional information:
1. Inventory on 31 March 2021:
Raw materials RM 19,400
Work in progress RM 16,400
Finished goods RM 31,400
2. Utilities and insurance expense are to be apportioned between factory and office in the ratio 2:1.
3. Only 40% of the rent expense and 50% of the general expense apply to factory operations,
the remaining amounts should be charged to administrative activities.
4. Accrued payments:
Factory direct wages RM 2,500
Utilities RM 1,800
5. Depreciation for the year is to be charged as follows:.
Plant and machinery 10% on cost Office equipment 5% on reducing balance method
Required :
a) Prepare statement of cost of goods manufactured for the year ended 31 March 2021.
b) Prepare statement of profit or loss for the year ended 31 March 2021.
c) Prepare statement of financial position as at 31 March 2021.
Transcribed Image Text:GO-HEAD Sdn Bhd is a furniture manufacturer. The following balances have been extracted
from the books of the business as at 31 March 2021.
Debit
Credit
RM
RM
Сapital
Plant and machinery (at cost)
Office equipment (at cost)
Accumulated depreciation:
Plant and machinery
100,000
75,000
56,600
13,800
Office equipment
Inventory on 1 April 2020:
7,300
Raw materials
18,780
Work in progress
Finished goods
Accounts receivable and accounts payable
20,400
35,600
45,600
32,000
Bank
64,600
214,260
Raw material purchases
Sales
687,120
Bad debt
3,000
Freight-out
1,700
Purchase return on raw materials
4,780
Factory wages:
Direct
115,200
Indirect
43,600
Utilities expense
28,200
Insurance expense
General expense
19,500
15,860
Rent expense
9,500
Sales commission
35,600
42,000
845,000
Office salaries
845,000
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