The following schedule of balances was extracted from the accounting records of Diamond Platinums Manufacturing...

The following schedule of balances was extracted from the accounting records of Diamond Platinums Manufacturing Limited, as at 31st August 2018 :

Stock at 1st September 2017 :
Raw Material 285,500
Work in progress 97,000
Finished goods 204,000
Purchases and expenses for year 31st Aug. 2018 :-
Raw Materials 2,786,500
Indirect Materials 38,300
Direct Wages 487,600
Factory power 54,800
Factory heating and lighting 21,640
Office heating and lighting 8,900
Printing and stationery 13,720
Postage and telephone 7,150
Factory salaries 203,000
Office salaries 88,000
Factory insurances 13,700
Other insurances 5,600
Depreciation: Factory equipment & machinery 65,000
Office equipment 7,800
Office expenses 34,700
Advertising 9,820
Sales of manufactured produce to 31st August 2018 4,679,500
The following additional information is relevant to the above accounting period:
i Finished goods manufactured during the accounting period are transferred from the factory at a manufacturing price of cost of production plus 10 per cent.
ii Stocks at 31st August 2018: Shs
Raw Materials 350,000
Work in progress 87,960
Finished goods 231,700
iii Prepayments at 31st August 2018:
Factory insurances 2,140
Others insurances 975
iv Accruals:
Direct wages 13,760
Factory heating and lighting 1,890
Office heating and lighting 570
Factory power 4,800
REQUIRED :- Prepare the following financial statements :-
(a) Manufacturing Account
(b) Trading Account
c) Profit and Loss Account?

In Accounting
2 Answers Available
Asked by Aga on 8th May, 2020