E.

Sandiford
Manufacturing Account
for the year ending Dec 31st, 2010
$ $ $
DIRECT MATERIALS:
Opening Stock of raw materials $8,000.00
Purchases of raw materials $135,000.00
add: Transportation of raw materials $1,300.00
Returns of raw materials -$5,700.00
Net Purchases of raw materials $130,600.00
Cost of raw materials available for use $138,600.00
less: Closing Stock of raw materials -$6,000.00
Cost of raw materials consumed $132,600.00
DIRECT LABOUR:
Wages of factory workers $62,900.00
PRIME COST $195,500.00
FACTORY OVERHEADS:
Factory Manager's Salary $28,000.00
Packing Material $6,500.00
Factory Supplies $1,640.00
Warehousing $7,000.00
Dep'n expense on Lathe $1,900.00
Dep'n expense on Factory Machinery &
Equipment $2,100.00
Rent ($30,000 x 3/5) $18,000.00
Electricity ($7,200 x 3/5) $4,320.00
Total Factory Overheads $69,460.00
$264,960.00
add: Opening WIP $10,500.00
less: Closing WIP -$22,700.00
Cost of Production $252,760.00