This information is from the books of Tools Ltd for the year ended 28 February 20x6:

Additional information:

• Provide for depreciation on plant and machinery at the rate of 10% per annum on cost.

• Finished goods are transferred to the sales department at cost of manufacture plus 10% and the finished goods above were valued on this basis. Final inventory of finished goods consists of manufactured goods only, as all purchased finished goods are sold.

You are required to:

You are required to draft the statement of the cost of goods manufactured and statement of profit or loss & other comprehensive income for the year ended 28 February 20x6, clearly showing the following:

1. Cost of raw material consumed.

2. Cost of manufacture.

3. Profit on manufacture.

4. Cost of sales.

5. Gross profit.

6. Net profit before taxation.

Transcribed Image Text:

Direct manufacturing wages paid Indirect manufacturing wages Administrative salaries Raw material (1 March 20x5) Raw material purchases Raw material (28 February 20x6) Raw material sales (cost price R1 200) Inventory of finished goods (1 March 20x5) Inventory of finished goods (28 February 20x6) Sales Purchases of finished goods Carriage in on raw material purchases Carriage in on purchases of finished goods Plant and machinery at cost Provision for depreciation: Plant and machinery Provision for unrealised profit on finished goods Factory power Maintenance of machinery Selling and administration expenses Work-in-progress (1 March 20x5): Raw material Direct wages Factory overhead 1 200 00 2 600 00 1 600 00 240 000 00 90 000 00 36 000 00 4 800 00 480 000 00 5 400 00 1 260 00 198 000 00 191 400 00 1 210 000 00 60 000 00 1 200 00 1 800 00 300 000 00 30 000 00 18 000 00 4 200 00 6 000 00 36 000 00 5 400 00 ********