In: Accounting
Question 4 [unit 5: obj. 1;4]
HanLue Brothers, a manufacturing company, produces the following balances from its books at 30th September 2017:
$ |
|
Stocks at 1 October 2016: |
|
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 2016 |
64,000 |
Bad debts (written off) |
325 |
Bank |
3,115 |
Sales |
721,560 |
Furniture & equipment (at cost) |
|
-Factory |
42,000 |
-Office |
48,000 |
Provision for depreciation of furniture & equipment at 1 October 2016 |
|
-Factory |
8,400 |
-Office |
9,600 |
Office machine at cost |
12,000 |
Provision for depreciation on office machine |
3,000 |
Carriage outwards |
205 |
Discount allowed |
950 |
Land |
500,000 |
Capital |
288,045 |
Debtors |
18,526 |
Creditors |
11,756 |
Bank Loan |
175,000 |
Additional information:
(1) Closing stocks at 30 September 2017 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 2017:
$ |
|
Rates |
450 |
Insurance |
220 |
(3) Accruals at 30 September 2017:
$ |
|
Direct wages |
1,220 |
Telephone |
70 |
Light, heat and power |
210 |
(4) At 30 September 2017, depreciation is to be provided as follows:
Per year on cost |
|
Plant and machinery |
20% |
Furniture and equipment |
10% |
(5) Expenses are to be apportioned to the factory as follows:
$ |
|
Rates |
4 / 5 |
Insurances |
3 / 4 |
Telephone |
2 / 3 |
Light, heat and power |
3 / 4 |
(6) It is the policy of the company to transfer goods manufactured to the warehouse at factory cost plus 15%
Required:
(total 30 marks)
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