Reference no: EM13375752
Aytenew plc manufactures and sales sports shoe. it had also decided to import genuine leather shoes to meet the needs of local consumers. the following balances were extracted from the book on 31 December 2013.
CARRIAGE INWARDS:SHOE IMPORTED=62300
CARRIAGE OUTWARDS=6500
ELECTRICITY=5600
FACTORY EXPENSE=44,000
MANUFACTURING WAGES=137500
OFFICE EXPENSE=19700
OFFICE FURNITURE AND FIXTURE AT COST=121,000
OPENING STOCKS:
FINISHED GOODS AT COST=52,300
WORK IN PROGRESS AT COST=23,800
PLANT AND MACHINERY AT COST=308,000
PURCHASE:SHOE IMPORTED=352,000
RATES AND INSURANCE=8,300
RAW MATERIALS CONSUMED=354,900
RETURNS INWARDS:SHOE MANUFACTURED=13,400
OFFICE SALARIES=146,800
SALES:
SHOE MANUFACTURED=925,300
SHOE IMPORTED=538,600
SELLING EXPENSE=36,200
ADDITIONAL INFORMATION:
1.CLOSING STOCKS VALUED AT COST
SHOES MANUFACTURED=0
SHOES IMPORTED =55,400
WORK IN PROGRESS=36,700
2.From 1 january 2013 on-wards,the manufactured goods are transferred to the trading account at factory cost plus 25 % profit loading.
3. Depreciation is to be provided at 10 % on cost for office furniture and fixtures and plant and machinery.
4. The expense on electricity,and rates and insurance are chargeable three-fifths to the factory and the balance to the office.
5.On 1 july 2013,the company issued for cash 300,000, 10 % debentures repayable at the end of june 2013.
6.On 31 december 2013,accrued office salaries amounted to 13,200 and the prepaid insurance premium was 2,300.
Required:
Prepare for aytenew plc. The following accounts for the year ended 31: december 2013.
A. A manufacturing account showing the prime cost and total cost of manufactured shoes transferred to the trading account.
B. A trading and profit and loss account showing separately the gross profit and sales of manufactured shoes and imported shoes.