From the following figures prepare manufacturing and trading accounts so as to show:

(a) Cost of raw materials used in production.

(b) Prime cost.

(c) Production cost of finished goods produced.

(d) Cost of goods sold.

(e) Gross profit.

Transcribed Image Text:

Stocks at 1 January 20X2 Raw materials Goods in course of manufacture (at factory cost) Finished goods Stocks at 31 March 20X2 Raw materials Goods in course of manufacture (at factory cost) Finished goods Expenditure during the quarter: Purchases of raw materials Factory wages: direct indirect Carriage on purchases of raw materials Rent and business rates of the factory Power Depreciation of machinery Repairs to factory buildings Sundry factory expenses Sales during the quarter £ 10,500 2,400 14,300 10,200 2,900 13,200 27,200 72,600 13,900 700 1,200 2,000 3,900 1,300 900 160,400