Principles of Accounting: Example question Manufacturing Accounts

////Principles of Accounting: Example question Manufacturing Accounts

Principles of Accounting: Example question Manufacturing Accounts

ZIMSEC O Level Principles of Accounting: Example question Manufacturing Accounts

Manufacturing Accounts Example Question

E Makonese is a manufacturer. His trial balance at 31 December 20X8 is as follows:

$$
Delivery van expenses1 760
Lighting and heating:
Factory7 220
Office1 490
Manufacturing wages72 100
General Expenses:
Factory8 100
Office1 940
Sales reps: commission11 688
Purchase of raw materials57 210
Rent
Factory6 100
Office2 700
Machinery (which cost $40 000)28 600
Office Equipment (Which cost $9 000)8 200
Office salaries17 740
Debtors34 200
Creditors9 400
Bank16 142
Sales194 800
Van (Which cost $6 800)6 200
Stocks at 31 December 20x7
Raw materials13 260
Finished Goods41 300
Drawings24 200
Capital155 950

360 150

360 150

Additional information:

  1. Stocks at 31 December 20X8: raw materials $14 510; finished goods $44 490. There is no work in
    progress.
  2. Depreciate machinery $3 000; office equipment $600; van $1 200.
  3. Manufacturing wages due but unpaid at 31 December 20X8 $550; office rent prepaid $140.

Required

  1. Prepare the manufacturing account for E. Makonese for the year ended 31 December 20×8
  2. Prepare the Income statement for E. Makonese for the year ended 31 December 20×8
  3. Prepare the Statement of Financial Position for E Makonese as at 31 December 20×8

The solution to this question can be found here

To access more topics go to the Principles of Accounts Notes.

By |2018-02-23T09:46:52+00:00February 19th, 2018|Notes, Ordinary Level Notes, Principles of Accounts Notes|Comments Off on Principles of Accounting: Example question Manufacturing Accounts

About the Author:

He holds an Honours in Accountancy degree from the University of Zimbabwe. He is passionate about technology and its practical application in today's world.
%d bloggers like this: