QUESTION 6 (30 Marks) These balances and totals are from Mark and Brake Ltd who manufactures sport equipment: Inventory
Posted: Sun Apr 17, 2022 7:04 pm
QUESTION 6 (30 Marks) These balances and totals are from Mark
and Brake Ltd who manufactures sport equipment: Inventory 1 March
20x7 Raw material 14,400 Work in progress (WIP) 9,500 Finished
goods 52,000 Delivery vehicles at cost 19,000 Plant and machinery
at cost 120,000 Office furniture at cost 6,000 Bank 11,400
Accumulated depreciation on 1 March 20x7 Delivery vehicles 3,800
Plant and machinery 36,000 Office furniture 1,200 Water and
electricity Factory 6,200 Office 320 Purchase of raw material
144,000 Customs duty on raw material 3,400 Freight in on raw
material 7,200 Insurance paid: Factory 2,520 Office 840 Insurance
paid in advance 1 March 20x7 Factory 960 Office 260 Allowance for
bad debts on 1 March 20x7 830 Accounts receivable 16,600 Factory
wages 73,000 Indirect labour 9,600 Salaries Sale personnel 17,400
Office personnel 11,600 Factory overheads 4,560 Stationery 760
Sales 260,400 Additional information: Inventory on hand 28
February 20x8: - Raw material N$13,400 - Work - in - progress
N$10,700 - Finished goods N$60,000 Depreciation should be
provided for on the reducing balance method: - Delivery vehicles
20% p.a - Plant and Machinery 15% p.a - Office furniture 5% p.a
Insurance is payable one year in advance on 01 July. Finished
goods are transferred from the factory to the sales department- at
production cost plus 25%. 11 YOU ARE REQUIRED TO: 1. Prepare the
statement of cost of goods manufactured for the year ended 28
February 20x8 (10 marks) 2. Prepare the statement of profit or loss
and other comprehensive income for the year ended 28 February 20x8
(10 marks) 3. Prepare the extracted statement of financial position
as at 28 February 20x8 (10 marks)
and Brake Ltd who manufactures sport equipment: Inventory 1 March
20x7 Raw material 14,400 Work in progress (WIP) 9,500 Finished
goods 52,000 Delivery vehicles at cost 19,000 Plant and machinery
at cost 120,000 Office furniture at cost 6,000 Bank 11,400
Accumulated depreciation on 1 March 20x7 Delivery vehicles 3,800
Plant and machinery 36,000 Office furniture 1,200 Water and
electricity Factory 6,200 Office 320 Purchase of raw material
144,000 Customs duty on raw material 3,400 Freight in on raw
material 7,200 Insurance paid: Factory 2,520 Office 840 Insurance
paid in advance 1 March 20x7 Factory 960 Office 260 Allowance for
bad debts on 1 March 20x7 830 Accounts receivable 16,600 Factory
wages 73,000 Indirect labour 9,600 Salaries Sale personnel 17,400
Office personnel 11,600 Factory overheads 4,560 Stationery 760
Sales 260,400 Additional information: Inventory on hand 28
February 20x8: - Raw material N$13,400 - Work - in - progress
N$10,700 - Finished goods N$60,000 Depreciation should be
provided for on the reducing balance method: - Delivery vehicles
20% p.a - Plant and Machinery 15% p.a - Office furniture 5% p.a
Insurance is payable one year in advance on 01 July. Finished
goods are transferred from the factory to the sales department- at
production cost plus 25%. 11 YOU ARE REQUIRED TO: 1. Prepare the
statement of cost of goods manufactured for the year ended 28
February 20x8 (10 marks) 2. Prepare the statement of profit or loss
and other comprehensive income for the year ended 28 February 20x8
(10 marks) 3. Prepare the extracted statement of financial position
as at 28 February 20x8 (10 marks)