Manufacturing Account for the year ended

$ $

Opening Inventory of Raw Materials 36 520

Add: Purchases of Raw Materials 130 720

Add: Carriage Inwards 3 600

Less: Returns Outwards of Raw Materials (0)

Cost of raw materials available 170 840

Less: Closing Inventory of Raw Materials (39 000)

Cost of raw Materials Used 131 840

Direct labour 134 600

PRIME COST 266 440

Add: Factory Overhead Expenses:

Rent (50%) 14 500

Utilities (70%) 10 500

Depreciation: Factory Equip 15 800 40 800

307 240

Opening Work in Progress (WIP) 45 920

Less: Closing WIP (33 800) 12 120

Cost of Production 319 360

Cost per unit = cost of production

Units produced

= 319 360

25 000

= $12.78 per unit

 $ $

Sales 500 000

Less: Cost of goods sold:

Opening stock Finished goods 36 200

Add: Production cost of goods completed 319 360

Add: Purchases of finished goods 50 600

406 160

Less: Closing stock of finished goods (47 000)

(359 160)

Gross Profit 140 840

Less: Expenses

Carriage outwards 2400

Office salaries 34 800

Dep office 5400

Utilities (30%) 4500

Rent (50%) 14 500

61 600

Net Profit 79 240

Manufacturing Account for the year ended

$ $

Opening Inventory of Raw Materials 36 520

Add: Purchases of Raw Materials 130 720

Add: Carriage Inwards 3 600

134 320

Less: Returns Outwards of Raw Materials (0) 134 320

Cost of raw materials available 170 840

Less: Closing Inventory of Raw Materials ( 39 000)

Cost of raw Materials Used 131 840

Direct wages 134 600

PRIME COST 266 440

Add: Factory Overhead Expenses:

Utilities (70%) 10 500

Dep: Factory equip 15 000

Rent (50%) 14 500

40 000

Opening Work in Progress (WIP) 45 920

Less: Closing WIP (33 800) 12 120

Cost of Production 318 560

$ $

Sales x

Less: Cost of goods Sold:

Opening Inventory of finished goods x

Add: production cost of goods completed x

Less: closing inventory of finished goods (x) x

Gross profit xx
Manufacturing Account for the year ended

$ $

Opening Inventory of Raw Materials 6500

Add: Purchases of Raw Materials 70100

Add: Carriage Inwards 900

Less: Returns Outwards of Raw Materials (2500)

Cost of raw materials available x

Less: Closing Inventory of Raw Materials (x)

Cost of raw Materials Used x

Direct wages

Direct Expenses
x

PRIME COST x

Add: Factory Overhead Expenses:

Direct Expenses x

Power x

Depreciation x x

Opening Work in Progress (WIP) x

Less: Closing WIP (x) x

Cost of Production xx

$ $

Sales x

Less: Cost of goods Sold:

Opening Inventory of finished goods x

Add: production cost of goods completed x

 X

Less: closing inventory of finished goods (x) x

Gross profit xx