Roy Reds Ltd is a Manufacturing Company.The FollowingLedger account balances were extracted from the books of thecompany for the year ended December 31,2004
stocks as at January1,2004:
Raw materials$40000,Partly manufactured good (WIP)$50000,Finished Goods $37000
Stocks as at December 31,2004:
Raw Materials $30000,Partly Manufactured goods (WIP)$60000 Finished Goods $45000
Other balances:
Purchases of raw materials$136000,freight and carriageon raw materials $5000,production workers salary $170000,Rent andRates$8000,Gas and Fuel $15000,office workers pay$20000,Depreciation of productive machinery and plant $10000,sales$550000
Notes:
Rent and rates,gas and fuel must be apportioned 60% tofactory and 40% to office.
Required:
Prepare the Manufacturing,Trading and Profit and lossAccounts for the period ending 31December 2004(clearly indicate thefollowing in your answer)
1 Prime Cost
2 Factory Overheads
3 Cost of Production
4 Gross Profit
5 Net Profit
