11.5 EXERCISES 1. The following balances appear in the books of xf Sad Saw, a sole Trader, at the close of its financial year to June 30,2000. . Sad Sam: balances for year ended June 30,2000. Stocks Manufactured goods 17,061 Work in progress 5,697, 6,906 Raw materials Manufacturing wages 110,934 Travelers salaries and expenses 24,348 Fuel and power 28,662 Office and General expenses 7,107 Plant Repairs 2,943 Administrative salaries 3,306. - Carriage on raw materials 2,361 * Factory expenses 9,234 Motor running expenses ~ 5:691 Material purchased 57,111Rent, Rates and Insurance 7,860 Light and heating 2,544 Sales of furnished goods 320,664 You are given the following information ()__ the valuation of stock at close of the financial year was as follows: PS Manufactured goods. 15,975 Work in progress 9,168 Raw materials 6,756 (ii) the following adjustments are to be made atthe end of the year Inadvances . Accrued Due Ne x Office and General Expenses. 702 4,104 Rates. 972. Light and heating - 144 (iii) Depreciation is to be provided for the year as follows x machinery and plant 2,368 Motor Vehicles 1,008 Office Equipment m1 (iv) Debtto the value of 3¥ 1,218 are to be written offas bad. (v) Insurance, rates and rent, and lighting and heating are to be apportioned at the rate of seven-eights to the factory and one-eight to the office. You are required to prepare the traders manufacturing, trading and profit and loss account for the year ended June 30,2000 2... The following balances were extracted from the books of Nsemo & Co, a manufacturing business at march 2002.cag Raw materials purchased 38,200 Stock at April, 2001 Raw materials at cost 12,000 Workin progress at prime cost 45,500 Finished goods at transfer price From factory 16,500 Manufacturing wages — direct 40,200 Factory general expenses 1,980 Sales 422,000 Rates and Insurance 2,620 Factory power 4,200 Repairs — Factory Building 440 Repairs — plant and Machinery 940 11,200 Manager's salaries General office salaries The following information an‘ account: @ (i) (ii) (iv) “ You are required to prepare mal &Expenses 2,200 .d instructions are to be taken into 2& 4,200 is to be provided in respect of depreciation of plant and machinery for the year; Insurance paid in advance amount to N60. three- quarters of Rates and Insurance is attributable to the factory and one quarter, tothe general office; One-half of managers’ salaries is attributable to factory; Stock at march 31,2002 were valued as follows: Raw materials + 20,200 (at cost) Work-in-progress 5° 43,000(at prime cost) Finished goods 3X 16,940 (at transfer price from factory to trading department) Finished output is transferred from factory tothe trading department at factory cost plus 10%. nufacturing, trading andprofit and loss account for the year ended March 31,2002, including appropriate adjustments for over-valuation of opening and closing stocks. 3. prepare the manufacturing, trading and profit and loss account for the year ended March 31, 1999 and a balance sheetat that date of WOKEYIM LTD from the trial balance given below: 2. TRIAL BALANCE As at March 31,1999 Dr Cr N RN Salaries 65,000 Purchases ofrawmaterials 220,000 Office expenses 15,000 Discount received 9,500 Rent 16,000 Sales 616,500 Repairs 15,000 Stocks of raw materials 1/4/98 78,500 Carriage inwards 15,000 Debtors / creditors 28,000 42,400 Carriage outwards 27,800 Factory wages 73,000 Work-in-Progress- 1/4/98 48,000 Drawings and capital 72,400 862,500 Stock of finished goods 1/4./98 91,500 Bad debts recovered 1,900 Returns inwards 7,500 Discount allowed 2,000 Factory premises 450,000 Office furniture 150,000 Machinery at cost 180,000Provision for depreciation of Machinery 45,000 Cash . . 23,100 1,577,800 1,577,800 The following matters are to be taken into account: (a) Factory wages due on March 31, 1999° 3420,000 (b) Stock of raw materials March 31,1999 , 3 73,500; stock of finished goods 31/3/1999 WW 158,100; work-in-progress 31/3/99 ¥¥ 20,000. (c) repairs and rent are to be allocated to factory and office in the ratio of 3:2. (d) Depreciate machinery and furniture at 20% per annum and 10% per annum respectively. _