The following balances have been extracted from the books of the David and Peter Manufacturing Company as

Question:

The following balances have been extracted from the books of the David and Peter Manufacturing Company as at 30 April 2011:

£000

Direct wages ............... 70

Factory equipment: at cost ...........360

General factory expenses ........... 13

Heat and light (factory ¾; general ¼) ....... 52

Purchases of raw materials ...........100

Stocks at 1 May 2010:

Raw material ............... 12

Work-in-progress .............. 18

Rent and rates (factory 2/3; general 1/3) ...... 42

Additional information:

1. Stocks at 30 April 2011: .......£000

Raw material ............. 14

Work-in-progress ........... 16

2. The factory equipment is to be depreciated at a rate of 15 per cent per annum on cost.

Required:

Prepare the David and Peter Manufacturing Company’s manufacturing account for the year to 30 April 2011.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...