Question $3$Question $3$

Izzara enterprise manufactures jeans. It is the financlal year$-$end for the business, and you have

been contacted to prepare lzzara's year$-$end accounts. The bookkeeper provides you with the

following extraction of lzzara's accounts.

Additional information:

Closing inventories at $31$ December $2023.$

$75\%$ of rent and rates and $80\%$ of electricity and power relate to the factory.

Required:

a$)$ Compute total prime cost.

b$)$ Calculate total manufacturing cost.

c$)$ Compute the cost of goods manufactured.

Izzara enterprise manufactures jeans. It is the financial year$-$end for the business, and you have been contacted to prepare Izzara's year$-$end accounts. The bookkeeper provides you with the following extraction of Izzara's accounts.

$\backslash$table$[[$Items$,$RM$],[$Depreciation $-$ plant and machinery,$60,000],[$Depreciation $-$ office building,$25,000],[$Opening inventories :$,],[$Raw materials,$42,000],[$Work$-$in$-$progress,$28,000],[$Finished goods,$46,000],[$Purchase of raw materials,$516,000],[$Electricity and power,$42,000],[$Bookkeepers$\text{'}$ salaries,$34,000],[$Production wages,$118,000],[$Indirect labour,$26,000],[$Rent and rates,$42,000],[$Repairs to plant,$18,000]]$

Additional information:

Closing inventories at $31$ December $2023.$

$\backslash$table$[[,$RM$],[$Raw materials,$50,000],[$Work$-$in$-$progress,$22,000],[$Finished goods,$52,000]]$

$75\%$ of rent and rates and $80\%$ of electricity and power relate to the factory.