The following information appeared in the accounting records of GLASSWARE Ltd$,$ a manufacturing

entity, at $28$ February $2022,$ the end of the financial year.

Extract from the trial balance as at $28$ February $2022$:

N$

Inventory on hand $1$ March $2021$

Raw materials $160650$

Work$-$in$-$progress $229500$

Finished products $469200$

Raw material purchased $($including N$$52326$ indirect material$)511326$

Raw materials issued to production $?$

Air freight paid on raw material purchased in Nigeria $163200$

Indirect materials additionally issued to production $6426$

Insurance expenses $($including N$$8415$ for office insurance$)30294$

Depreciation $(10$:$3$ ratio applicable for manufacturing equipment and office $39780$

Furniture respectively$)$

Rent expenses $(60\%$ of the rent was paid for the factory premises$)84150$

Wages and salaries paid $336600$

Water and electricity $($N$$272646$ included for the factory water& electricity$)321453$

Sales during the year $1530000$

Additional information:

$1.$ Inventory is valued on the FIFO $($First$-$in$-$First$-$out$)$ method.

$2.$ Inventory on hand$-28$ February $2022$: N$

Raw materials $387090$

Work$-$in$-$progress $535041$

Finished products $532440$

$3.$ Products are transferred to the sales department at cost plus $15\%.$

$4.30\%$ of salaries and wages represent indirect labour cost of which N$$39780$ was paid to the

factory supervisor. The rest of the salaries and wages relate to direct labourers.

$5.$ All indirect materials issued were used in the production process. The raw material account in

the general ledger contains both the receipt and issue of direct and indirect material.

$6.$ At $1$ March $2021,$ the allowance for the unrealised profit in finished products inventory

amounted to N$$61200.$

$7.$ The remainder of the insurance expense relates to the insurance on the factory equipment.

FACULTY OF COMMERCE, MANAGEMENT AND LAW

OLD CURRICULUM MODULES

Page $20$ of $21$

REQUIRED:

Prepare the following accounts, properly balanced and closed off, in the general ledger of

GLASSWARE Ltd for the year ending $28$ February $2022$:

$1.$ Raw materials $(5$ marks$)$

$2.$ Factory overheads $(5$ marks$)$

$3.$ Work$-$in$-$progress $(5$ marks$)$

$4.$ Finished goods inventory $(5$ marks$)$

$5.$ Allowance for unrealised profit $(5$ marks$)$