Question
The following is the Trail balance of AMS ltd as at 31 December 2020 Dr Cr GHS GHS Inventory of raw material 1.1.2010 21,000 Inventory
The following is the Trail balance of AMS ltd as at 31 December 2020
Dr Cr
GHS GHS
Inventory of raw material 1.1.2010 21,000
Inventory of finished goods 1.1.2010 38,900
Work in - progress 1.1.2010 13,500
Wages (direct 180,000; indirect 145,000) 325,000
Royalties 7,000
Carriage inwards (on raw materials) 3,500
Purchases of raw materials 370,000
Productive machinery (cost 280,000) 230,000
Administration computers (cost 20,000) 12,000
General factory expenses 31,000
Lighting 7,500
Factory power 13,700
Administration salaries 44,000
Sales reps' salaries 30,000
Commission on sales 11,500
Rent 12,000
Insurance 4,200
General administration expenses 13,400
Bank charges 2,300
Discounts allowed 4,800
Carriage outwards 5,900
Sales 1,000,000
Accounts receivable and accounts payable 142,300 64,000
Bank 16,800
Cash 1,500
Drawings 60,000
Capital as at 1.1.2010 357,800
Total 1,421,800 1,421,800
Note at 31.12.2020:
1). Inventory of raw material 24,000; inventory of finished goods 40,000; work in - progress 15,000.
2) Lighting, rent and insurance are to be apportioned: factory 5/6, administration 1/6.
3) Depreciation on productive machinery and administration computers at 10 per cent per annum on cost.
You are required to prepare:
- Manufacturing account ( 5 Marks)
- Income statement (10 marks)
- Statement of Financial Position as at 31/12/2020 (5marks)
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