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Mini Assessment Manufacturing account

Sally Swift owns a small manufacturing business. The following balances were Mini Assessment Manufacturing Account
taken from the books on 30 June 2015.
Sally Swift owns a small manufacturing business. The following balances were
$ taken from the books on 30 June 2015.
Inventory 1 July 2014
Raw materials 20,400 $
Finished goods 25,000 Inventory 1 July 2014
Inventory 30 June 2015 Raw materials 20,400
Raw materials 18,800 Finished goods 25,000
Finished goods 26,200 Inventory 30 June 2015
Factory expenses 26,600 Raw materials 18,800
Factory supervisors wages 28,000 Finished goods 26,200
Manufacturing wages 12,500 Factory expenses 26,600
Factory ower and lighting 3,680 Factory supervisors wages 28,000
Purchases of raw materials 156,500 Manufacturing wages 12,500
Carriage on raw materials 2,800 Factory power and lighting 3,680
Depreciation on: Purchases of raw materials 156,500
Factory machinery 12,400 Carriage on raw materials 2,800
Office equipment 2,480 Depreciation on:
Direct expenses 3,600 Factory machinery 12,400
Sales of finished goods 350,000 Office equipment 2,480
Rent of building 3,600 Direct expenses 3,600
Sales of finished goods 350,000
Rent of building 3,600
Additional information:

1 Rent of building is to be divided between factory and office in the ratio 2: 1. Additional information:

Required: 1) Rent of building is to be divided between factory and office in the ratio 2: 1.

a Manufacturing account for the year ended 30 June 2015 clearly showing Required:
cost of raw materials consumed, prime cost and cost of production.
b Income statement for the year ended 30 June 2015 clearly showing gross a Manufacturing account for the year ended 30 June 2015 clearly showing
profit and net profit. cost of raw materials consumed, prime cost and cost of production.
b Income statement for the year ended 30 June 2015 clearly showing gross
profit and net profit.