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Joytoy manufacturers had a policy of transferring factory production to the sales department at a profit of 10% on total cost of production of finished goods. The following particulars related to the records of the firm for the period 1 January 2000 to 31 December 2000. Balances 1 January 2000 Raw materials 20 000 30 000 55 000 Work in progress Finished goods Direct wages due Direct wages prepaid 400 200 Electricity due 800 Purchases of raw materials for the year Carriage inwards 245 000 3 000 4000 Customs duty Purchases returns 5 000 Raw materials costing 10 000 Sold Direct wages paid Electricity paid Insurance factory Repairs to equipment (factory) Returns inwards 18 000 90 000 3400 1 200 2 740 10 000 792 000 200 000 60 000 Sales Land and buildings at cost Equipment (factory) at cost Provision for unrealized profit on stock of finished goods Office furnisher at cost Motor vehicles at cost Rates (factory) Water (75% factory) Stationery and printing (factory) Factory maintenance 5 500 14 000 50 000 4 800 4200 5 100 12 000 Postage and telephone 1 800 Accumulated depreciation: Office furniture 5 600 Equipment 24 000 Motor vehicles 15 000 Other expenses (Sundry) 235 240 Furtherinformation Balances 31 December: Raw materials 30 000 Work in process 24 000 Electricity due 600 Direct wages due 960 Finished goods ? Stock on finished goods had not been taken on 31 December 2000, but the work on a gross profit markup percentage of 50% on turnover. This calculation is based on the price at which manufactured goods are delivered the sales department by the factory. 2. Depreciation to be provided: Factory equipment at 10% per annum on cost. Office furnisher at 5% per annum on cost. Motor vehicles at 20 % per annum on cost. Required Draw up the production cost statement and income statement of the business for the year ended 31 December 2000

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