From the following information, draw up the manufacturing and trading accounts for the six months ending 30 September 2005. You should show clearly:

(a) Cost of raw materials consumed.

(b) Prime cost of production.

(c) Production cost of finished goods.

(d) Gross profit on sales.

Transcribed Image Text:

4 Stocks, 1 April 2005: Raw materials Work in progress 2,990 3,900 Finished goods 15,300 Stocks, 30 September 2005: Raw materials 4,200 Work in progress 3,600 17,700 15,630 Finished goods Purchases of raw materials Carriage on raw materials Direct wages Factory general expenses Office salaries Depreciation of office furniture Carriage outwards Advertising Bad debts Sales less returns Sales of scrap Discounts received Depreciation of factory equipment Rent and business rates (factory three-quarters, office one-quarter) 126 48,648 7,048 22,200 420 191 1,472 200 112,410 1,317 188 4,200 2,800