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plz solve this step by step Question 4 The following information is supplied by the bookkeeper of the Overseas Manufacturing Company for the year ended
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Question 4 The following information is supplied by the bookkeeper of the Overseas Manufacturing Company for the year ended 31 March 2001: Stocks, 1 April 2000 Raw materials Finished goods Work in progress Sales Sales commission 3,150,000 4,470,000 2,745,000 77,280,000 1,512,000 Wages and salaries Direct labour Indirect labour Administrative staff Purchases of raw materials Carriage inwards Carriage outwards Electricity and water Other production expenses Other administration expenses Plant and machinery, at cost Office equipment, at cost Stocks, 31 March 2001 Raw materials Finished goods Work in progress 24,930,000 4,890,000 4,203,000 16,936,000 195,000 896,000 1,035,000 4,980,000 2.565.000 6,000,000 3,800,000 2,370,000 2,625,000 2.820,000 Additional information: (i) Depreciation was to be provided for: Plant and machinery 20% on cost Office equipment 25% on cost (ii) Electricity charges of $165,000 were in arrears at 31 March 2001. (iii) Electricity and water was to be apportioned as follows: Factory 80% Administration 20% (iv) Salaries of administrative staff included an amount of $80,000 payable to the factory manager as a bonus. REQUIRED: Prepare the manufacturing and trading accounts of Overseas Manufacturing Company for the year ended 31 March 2001, showing clearly the cost of raw materials consumed, the prime cost, the production cost of finished goods and gross profit. (10 marks)Step by Step Solution
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