Manufacturing cost schedule and income statement

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Reference no: EM13503320

Question Manufacturing Cost Schedule and Income Statement

Neptune Manufacturing Co is a wholly owned subsidiary of Jupiter Australia and utilises a traditional manufacturing cost flow inventory and accounting system. Neptune Manufacturing Co is incorporated and operates in Australia and pays tax at the Australian corporate rate of 30%. There are no adjustments for accruals or prepayments.

Trading data for Neptune Manufacturing Co for the 2013 calendar year was as follows:

Account:

$

Raw Materials & Ingredients (Purchases)

12,582,000

Freight Inwards

370,000

Plant Utility Costs

2,486,500

Depreciation of Factory Plant, Equipment & Machinery

1,250,000

Depreciation of Office Equipment & Furniture

156,000

Office Salaries and Costs

1,256,000

Factory Direct Labour Cost

3,658,000

Factory Indirect Labour Cost

1,123,000

Manufacturing Overhead

482,000

Interest & other charges

1,901,000

Sales Revenue

32,101,000

Freight Outwards

672,000

Sales & Marketing Expenses

1,985,000

Accounting & Audit costs

875,000

On December 31st 2013 selected account balances of Neptune Manufacturing Co were as follows (with comparative 31/12/2012 Opening Balance figures):

Account:

Dec 31, 2013

Dec 31, 2012

Cash & Cash Equivalents

327,000

1,243,000

Accounts Receivable 

2,459,000

1,926,000

Factory Plant, Equipment & Machinery (at cost)

8,500,000

7,125,000

Office Equipment & Furniture (at cost)

1,500,000

1,450,000

Land & Buildings (at cost)

13,500,000

13,500,000

Raw Material Inventory

386,500

426,000

Work in Process (WIP) Inventory:

 

 

Raw Materials

1,178,000

902,000

Direct Labour

647,000

561,000

Manufacturing Overhead

296,000

205,000

Total WIP

2,121,000

1,668,000

Finished Goods Inventory

1,254,000

1,002,000

Accounts Payable

621,000

987,000

Long Term Debt

15,000,000

15,000,000

Using Excel prepare a Schedule of Cost of Goods Manufactured, Schedule of Cost of Goods Sold, and an income statement for the Jupiter Manufacturing Co from the information provided.

Reference no: EM13503320

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