QUESTION 6 (30 Marks) These balances and totals are from Mark and Brake Ltd who manufactures sport equipment Inventory 1 March 20x7 Raw material 14,400 9,500 Work in progress (WIP) Finished goods 52,000 19,000 Delivery vehicles at cost Plant and machinery at cost 120,000 Office furniture at cost 6,000 Bank 11,400 Accumulated depreciation on 1 March 20x7 Delivery vehicles 3,800 Plant and machinery 36,000 Office furniture 1,200 Water and electricity Factory 6.200 Office 320 144,000 Purchase of raw material Customs duty on raw material Freight in on raw material 3,400 7,200 Insurance paid: Factory 2,520 Office 840 Insurance paid in advance 1 March 20x7 Factory 960 Office 260 Allowance for bad debts on 1 March 20x7 830 Accounts receivable 16,600 73,000 Factory wages Indirect labour Salaries 9,600 Sale personnel 17,400 Office personnel 11,600 4,560 Factory overheads Stationery Sales 760 260,400 Additional information: Inventory on hand 28 February 20x8 N$13,400 Raw material Work-in-progress N$10,700 N$60,000 - Finished goods Depreciation should be provided for on the reducing balance method: - Delivery vehicles 20% pa 15% p.a Plant and Machinery Office furniture 5% p.a Insurance is payable one year in advance on 01 July. Finished goods are transferred from the factory to the sales department- at production cost plus 25%. 10 YOU ARE REQUIRED TO: 1. Prepare the statement of cost of goods manufactured for the year ended 28 February 20x8 (10 marks) 2. Prepare the statement of profit or loss and other comprehensive income for the year ended 28 February 20x8 (10 marks) 3. Prepare the extracted statement of financial position as at 28 February 20x8 (10 marks) QUESTION 6 (30 Marks) These balances and totals are from Mark and Brake Ltd who manufactures sport equipment: Inventory 1 March 20x7 Raw material 14,400 Work in progress (WIP) 9.500 Finished goods 52.000 Delivery vehicles at cost 19,000 Plant and machinery at cost 120,000 Office furniture at cost 6,000 Bank 11,400 Accumulated depreciation on 1 March 20x7 Delivery vehicles 3,800 Plant and machinery 36,000 Office furniture 1,200 Water and electricity Factory 6,200 Office 320 Purchase of raw material 144,000 Customs duty on raw material 3.400 7,200 Freight in on raw material Insurance paid: Factory 2,520 Office 840 Insurance paid in advance 1 March 20x7 Factory 960 Office 260 Allowance for bad debts on 1 March 20x7 830 Accounts receivable 16.600 Factory wages 73,000 9.600 Indirect labour Salaries Sale personnel 17,400 11,600 4,560 Office personnel Factory overheads Stationery Sales 760 260,400 Additional information: Inventory on hand 28 February 20x8: Raw material N$13,400 Work-in-progress N$10,700 Finished goods N$60,000 Depreciation should be provided for on the reducing balance method: Delivery vehicles 20% p.a 15% p.a Plant and Machinery Office furniture 5% p.a Insurance is payable one year in advance on 01 July. Finished goods are transferred from the factory to the sales department- at production cost plus 25%. 10 YOU ARE REQUIRED TO: 1. Prepare the statement of cost of goods manufactured for the year ended 28 February 20x8 (10 marks) 2. Prepare the statement of profit or loss and other comprehensive income for the year ended 28 February 20x8 (10 marks) 3. Prepare the extracted statement of financial position as at 28 February 20x8 (10 marks)
