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Stripes Limited is a manufacturing entity. The following figures were included in its trial balance as at 31 December 2019. You are advised that the
Stripes Limited is a manufacturing entity. | |||||
The following figures were included in its trial balance as at 31 December | |||||
2019. You are advised that the building costs relate 70% to its factory and 30% | |||||
to its administrative offices and that 90% of the light and power costs relate to | |||||
the production activities. You are required to calculate the total cost of goods | |||||
producted for the year to 31 December 2019. | |||||
Inventories at 1 January 2019: | |||||
Work in Progress | 10,000 | ||||
Raw materials | 5,000 | ||||
Wages: | |||||
Factory | 250,000 | ||||
Directors | 200,000 | ||||
Sales & Marketing | 80,000 | ||||
Building Depreciation | 65,000 | ||||
Electricity | 12,000 | ||||
Purchases of raw materials | 160,000 | ||||
Advertising | 20,000 | ||||
Inventories at 31 December 2019: | |||||
Work in Progress | 3,000 | ||||
Raw Materials | 7,000 | ||||
Repair of production machinery | 4,000 | ||||
Machinery depreciation | 27,000 |
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