Asterix plc, a manufacturing company, has extracted the following balances from its books of account for the year ended 30 April 2012: $Revenues6 500Purchases of raw materials1 450Carriage inwards130Carriage outwards75Direct labour1 675Factory overheads1 350Office overheads1 025Inventories at 1 May 2011: Raw materials140Work in progress165Finished goods (at transfer price)330 Additional information:Factory overheads of $70 000 are accrued at 30 April 2012.Office overheads of $35 000 have been prepaid at 30 April 2012.Depreciation for the year on the non-current assets totaled $150 000 and this is to be split between the factory and the office in the ratio 2:1.Completed production is transferred at a mark-up on cost of 20%.Inventories were valued on 30 April 2012 as follows: Raw materials 235 work in progress 320 Finished goods (at transfer price) 438REQUIREDPrepare a manufacturing account and income statement for the year ended 30 April

Manufacturing Account: Cost of goods sold is prepared by manufacturing account and all production…

Answered: Asterix plc, a manufacturing company,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Asterix plc, a manufacturing company, has extracted the following balances from its books of account for the year ended 30 April 2012:

	$
Revenues	6 500
Purchases of raw materials	1 450
Carriage inwards	130
Carriage outwards	75
Direct labour	1 675
Factory overheads	1 350
Office overheads	1 025
Inventories at 1 May 2011:
Raw materials	140
Work in progress	165
Finished goods (at transfer price)	330

Additional information:

Factory overheads of $70 000 are accrued at 30 April 2012.
Office overheads of $35 000 have been prepaid at 30 April 2012.
Depreciation for the year on the non-current assets totaled $150 000 and this is to be split between the factory and the office in the ratio 2:1.
Completed production is transferred at a mark-up on cost of 20%.
Inventories were valued on 30 April 2012 as follows:

Raw materials 235

work in progress 320

Finished goods (at transfer price) 438

REQUIRED

Prepare a manufacturing account and income statement for the year ended 30 April

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