MANAGERIAL ACCOUNTING QUESTION 2

QUESTION 17 Dreght and Sons own a manufacturing business. Goods are transferred from the manufacturing account to the income statement at cost plus 30%. The following information is available for the year ended 31 March 20*9. Inventories at 1 April 20*8 Raw materials 8,162 6,183 Work in progress Finished goods 7,451 Inventories at 31 March 20*9 Raw materials. 7,466 Work in progress 5,774 Finished goods 8,549 Purchases of raw materials 112,431 Sales 873,442 798 Carriage inwards Carriage outwards 1,328 Wages direct labour 189,410 indirect labour 64,822 17,231 Factory power General tory overheads 21,461 Depreciation of factory machinery 28,000 Additional information at 31 March 20*9 An outstanding amount for factory power, 230, remained unpaid. General factory overheads, 488, had been paid in advance. Required Prepare: (a) a manufacturing account for the year ended 31 March 20*9 (b) an extract from the income statement for the year ended 31 March 20*9 showing the transfer from the manufacturing account