The following data was extracted from the books of H Thompson. Construct the manufacturing account for the year to 31 December 2010.

Additional information:
1 Inventory as at 31 December 2010 were valued as follows:

2 Insurance was assumed to split between production and non-production expenses equally 3 Factory rent and rates accrued as at 31 December 2010 was £425 4 Factory profit is calculated as 20% of total production costs.

Transcribed Image Text:

Inventory of raw materials as at 1 January 2010 5,670 Inventory of work-in-progress as at 1 January 2010 Purchases of raw materials 4,230 54,356 Direct wages 67,670 Royalties 3,280 Indirect factory expenses 7,890 Factory rent and rates 4,234 Insurance 5,660 Indirect production wages 13,200 Factory rent and rates accrued 425