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Manufacturing Accounts

The document provides financial data for Jim Brothers, a manufacturing company, as of September 30, 2024, including stock balances, purchases, expenses, and sales figures. It outlines additional information such as closing stocks, prepayments, accruals, depreciation rates, and expense apportionment. The company is required to prepare a manufacturing account, profit and loss account, and statement of financial position based on this data.

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Amos
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15 views3 pages

Manufacturing Accounts

The document provides financial data for Jim Brothers, a manufacturing company, as of September 30, 2024, including stock balances, purchases, expenses, and sales figures. It outlines additional information such as closing stocks, prepayments, accruals, depreciation rates, and expense apportionment. The company is required to prepare a manufacturing account, profit and loss account, and statement of financial position based on this data.

Uploaded by

Amos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Illustration one: Jim Brothers, a manufacturing company, produces the following

balances from its books at 30th September 2024


$
Stocks at 1st October 2023:
-Raw materials 7,450
-Work-in-progress(factory cost) 5,330
-Finished goods (transfer value) 12,110
Purchase of raw materials 128,740
Purchase returns 310
Direct expenses 3,280
Return inwards 1,215
Carriage inwards 1,055
Rates 5,250
Light, heat and power 3,270
Direct wages 187,240
Indirect wages 14,320
Telephone 890
Factory repairs 2,215
Insurances 1,420
Factory salaries 38,000
Office salaries 24,000
Sales salaries 27,435
Plant and machinery (at cost) 160,000
Provision for depreciation of plant & machinery at 1 st October 64,000
2023)
Bad debts (written off) 325
Sales 721,560
Furniture & equipment (at cost):
-Factory 42,000
-Office 48,000
Provision for depreciation of furniture & equipment at 1 st
October 2023:
-Factory 8,400
-Office 9,600
Additional information:
1) Closing stocks at 30th September 2024 are as follows:
$
Raw materials 6,325
Work-in-progress (factory cost) 6,105
Finished goods (transfer value) 15,225

2) Prepayments at 30th September 2024


$
Rates 450
Insurance 220

3) Accruals at 30th September 2024


$
Direct wages 1,220
Telephone 70
Light, heat, and power 210

4) At 30th September 2024, depreciation is to be provided as follows


Per year at cost
Plant and machinery 20%
Furniture and equipment 10%

5) Expenses are to be apportioned to the factory as follows:


$
Rates 4/5
Insurances ¾
Telephone 2/3
Light, heat and power ¾
6) It is the policy of the company to transfer goods manufactured to the warehouse
at factory cost plus 15%

Required:
Prepare in vertical format, Manufacturing account, the profit and loss account, and
the statement of financial position of Jim Brothers as at 30th September 2024

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