The following balances were extracted from the books of Asempa Asa Manufacturing Enterprise on 31

December, 2019.

GHS

Stocks (as at 1/1/2019)

Raw Materials 70,000

W.I. P 49,000

Finished Goods 70,500

Purchases of Raw Materials 1,190,000

Indirect Materials 11,000

Direct wages 315,000

Electricity 37,500

Printing and Stationery 6,500

Postage and Telephone 2,700

Salaries 110,000

Insurance 8,500

Office Expenses 9,000

Advertising 6,500

Royalties 60,000

Sales 1,995,000

Provision for unrealized Profits 6,500

The following additional information is relevant to the above accounting period :

(i) Finished goods manufactured during the accounting period are transferred to the warehouse
at factory cost plus 10%
(ii) Stocks at 31/12/2019: GHS
Raw materials 120,000
W.I.P 56,500
Finished Goods 99,000
(iii) Provide for depreciation as follows:
Equipment & Machinery 28,500
(iv) Insurance prepaid as at 31/12/2019 800
 (v) Accruals as at 31/12/2019
Direct wages 7,000
Electricity 3,000
(vi) The following expenses should be apportioned as follows:
Factory Office

Electricity 3/5 2/5

Salaries 3/5 2/5

Insurance 2/3 1/3

Depreciation 4/5 1/5

All other expenses are to be charged in full to Profit and Loss account.

You are required to prepare Manufacturing, Trading and Income Statement for the year ended
31/12/2019.