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Sweetberry Manufacturing Company is a family business that produces and sells pure water in Lagos. In the year ended October 31, 2019, the following balances were extracted from the company’s ledger accounts:
| Item | N’000 |
|---|---|
| Revenue | 900,000 |
| Raw materials purchased | 180,000 |
| Raw materials carriage expenses | 8,000 |
| Carriage outwards | 4,000 |
| Wages: Machine operators | 184,800 |
| Wages: Factory supervisors | 45,000 |
| Salary: Administrative staff | 124,000 |
| Salary: Sales and marketing staff | 104,000 |
| Distribution cost | 4,000 |
| Administration expenses | 15,500 |
| Rent and rates | 58,000 |
| Utility | 6,000 |
| Insurance | 9,500 |
| Sales promotion expenses | 20,000 |
| Discount received | 6,000 |
| Factory plant and machinery | 72,000 |
| Office equipment | 20,000 |
| Delivery van | 36,000 |
| Inventories as at Nov 01, 2018: | |
| – Raw materials | 34,000 |
| – Work-in-progress | 21,000 |
| – Finished goods | 40,000 |
| Inventories as at Oct 31, 2019: | |
| – Raw materials | 29,000 |
| – Work-in-progress | 32,000 |
| – Finished goods | 50,000 |
The following information is also relevant for the preparation of the financial statements:
(i) Straight line depreciation policy at the following rates:
(ii) General expenses are to be apportioned as follows:
| Expense Item | Factory (%) | Administration (%) |
|---|---|---|
| Rent and rates | 80 | 20 |
| Insurance and utility | 75 | 25 |
(iii) Insurance prepaid amounted to N1.5 million
(iv) Accrued administration expenses amounted to N500,000
Required:
Using the vertical format, prepare the manufacturing account and the statement of profit or loss for the year ended October 31, 2019. (20 Marks)
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Emeka produces and distributes “Zobo” and has provided you with the following information for the year ended 31 December 2012:
Additional information:
You are required to:
Prepare the statement of profit or loss for the year ended 31 December 2012.
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Sweetberry Manufacturing Company is a family business that produces and sells pure water in Lagos. In the year ended October 31, 2019, the following balances were extracted from the company’s ledger accounts:
| Item | N’000 |
|---|---|
| Revenue | 900,000 |
| Raw materials purchased | 180,000 |
| Raw materials carriage expenses | 8,000 |
| Carriage outwards | 4,000 |
| Wages: Machine operators | 184,800 |
| Wages: Factory supervisors | 45,000 |
| Salary: Administrative staff | 124,000 |
| Salary: Sales and marketing staff | 104,000 |
| Distribution cost | 4,000 |
| Administration expenses | 15,500 |
| Rent and rates | 58,000 |
| Utility | 6,000 |
| Insurance | 9,500 |
| Sales promotion expenses | 20,000 |
| Discount received | 6,000 |
| Factory plant and machinery | 72,000 |
| Office equipment | 20,000 |
| Delivery van | 36,000 |
| Inventories as at Nov 01, 2018: | |
| – Raw materials | 34,000 |
| – Work-in-progress | 21,000 |
| – Finished goods | 40,000 |
| Inventories as at Oct 31, 2019: | |
| – Raw materials | 29,000 |
| – Work-in-progress | 32,000 |
| – Finished goods | 50,000 |
The following information is also relevant for the preparation of the financial statements:
(i) Straight line depreciation policy at the following rates:
(ii) General expenses are to be apportioned as follows:
| Expense Item | Factory (%) | Administration (%) |
|---|---|---|
| Rent and rates | 80 | 20 |
| Insurance and utility | 75 | 25 |
(iii) Insurance prepaid amounted to N1.5 million
(iv) Accrued administration expenses amounted to N500,000
Required:
Using the vertical format, prepare the manufacturing account and the statement of profit or loss for the year ended October 31, 2019. (20 Marks)
Find Related Questions by Tags, levels, etc.
Emeka produces and distributes “Zobo” and has provided you with the following information for the year ended 31 December 2012:
Additional information:
You are required to:
Prepare the statement of profit or loss for the year ended 31 December 2012.
Find Related Questions by Tags, levels, etc.
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