The following information was also made available: 1. Expenses are to be allocated as follows: .............................. Factory ................ Administration Electricity and power ..... 90% ......................... 10% Repairs ...................... 80% ......................... 20% Rates and insurance ........ 70% ......................... 30% 2. Closing inventories included: raw materials £5,600; loose tools and utensils £3,200; finished goods £7,800; and work-in-progress £5,000. 3. Bad debts amounting to £1,000 are to be written off and the provision for doubtful debts reduced to £1,200. 4. The following amounts have yet to be provided for in the trial balance: electricity and power £1,600 and
The following information was also made available:
1. Expenses are to be allocated as follows:
.............................. Factory ................ Administration
Electricity and power ..... 90% ......................... 10%
Repairs ...................... 80% ......................... 20%
Rates and insurance ........ 70% ......................... 30%
2. Closing inventories included: raw materials £5,600; loose tools and utensils £3,200; finished goods £7,800; and work-in-progress £5,000.
3.
4. The following amounts have yet to be provided for in the
5. The following amounts have been prepaid as at the year end: rates £600 and vehicle licenses on sales representatives' cars £80.
6. A vehicle costing £3,000 and written down to £1,000 was sold for £1,200. None of these entries have been recorded in the trial balance as the bookkeeper did not know how to adjust for the sale.
7. Annual depreciation on plant and machinery and on motor vehicles is to be provided using the
8. An invoice for £200 for repairs to the building had been incorrectly posted to the administration expenses account.
9. A building costing £100,000 was purchased using a long-term loan on 1 January 20X2. Interest payable on the loan is 10 per cent per year. No entries for this transaction have been included in the trial balance. It has been decided to
Required
Prepare the following:
The manufacturing account and the statement of
The
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