John Saugh Form: 4L

A)
McNaughton Tools
Manufacturing A/C
For the year ended February 28, 2004

Direct Raw Materials

Raw Materials 27 000
Prime Cost 27 000
Factory Overhead
Insurance 4 400
Factory Salaries 25 700
Purchases of raw materials 36 300
Returns outwards 500
Factory Power and Fuel 83 200
Administrative expenses 120 000
Return inwards on finished goods 3000 273 100
300 100
Add. Work in progress 7 500
292 600
Less closing work in progress 13 200
Cost of Production 305 800

B)
Trading, Profit and Loss A/C
For the year ended February 28, 2004
Sales 532 800
Opening Finished goods 35 000
Add cost of goods manufactured 300 100
Less closing finished goods 20 000
Cost of goods sold 355 100
Gross profit C/D 177 700
Net income 177 700
John Saugh Form: 4L

C) I)
Gross Profit to Sales ratio
177 700 = 532 800
Ratio= 177 700: 532 800

II) Rate of turnover = 532 800/ 305 800

=1.74