Accounting Test Question No.Mfg 1 (With Answer) On Manufacturing Account

Below is an accounting test question on the preparation of a Manufacturing and trading account:-

Question:

Jim Brothers, a manufacturing company, produces the following balances from its books at 30 th September Year 7

	$
Stocks at 1 October Year 6:
Raw materials	7,450
Work-in-progress(factory cost)	5,330
Finished goods(transfer value)	12,110
Purchases of raw materials	128,740

Purchases 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 & machinery ( at cost)	160,000
Provision for depreciation of plant & machinery at 1 October Year 6	64,000
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 October Year 6
-Factory	8,400
-Office	9,600

Additional information:

(1) Closing stocks at 30 September Year 7 are as follows:-

	$
Raw materials	6,325
Work-in-progress(factory cost)	6,105
Finished goods(transfer value)	15,225

(2) Prepayments at 30 September Year 7:-

(3) Accruals at 30 September Year 7:-

(4) At 30 September Year 7, depreciation is to be provided as follows:

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

(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 and Trading Accounts Of Jim Brothers for the year ended 30 September Year 7