1
From the following figures prepare the manufacturing and trading accounts so as to show:
(a) Cost of raw materials used in production.
(b) Prime cost.
(c) Production cost of finished goods produced.
(d) Cost of goods sold.
(e) Gross profit.
Stocks at 1 January 2002
Raw materials 10,500
Goods in course of manufacture (at factory cost) 2,400
Finished goods 14,300
Stocks at 31 March 2002
Raw materials 10,200
Goods in course of manufacture (at factory cost) 2,900
Finished goods 13,200
Expenditure during the quarter:
Purchases of raw materials 27,200
Factory wages: direct 72,600
indirect 13,900
Carriage on purchases of raw materials 700
Rent and business rates of the factory 1,200
Power 2,000
Depreciation of machinery 3,900
Repairs to factory buildings 1,300
Sundry factory expenses 900
Sales during the quarter 160,400