Reference no: EM132539678

Beulah Trading is an entity with a 30 June year-end. The entity manufactures school shoes. Shoes that are manufactured by Beulah Trading are transferred to the sales department at a mark-up of 30% on cost.

The following costs were recorded in the books of Beulah Trading for the year ended 30 June 2019:

N$

Raw materials inventory on 1 July 2018      45 000

Raw materials purchased                       156 400

Labour cost                                          89 000

Raw materials inventory on 30 June 2019   67 900

Depreciation                                         4 500

Power and water consumption                 7 500

Insurance                                            2 350

Maintenance                                          749

Selling and general administrative costs  1 950

Work-in-progress on 1 July 2018            15 000

Work-in-progress on 30 June 2019                  9 300

The records of the sales department showed the following:

N$

Inventory on 1 July 2018 (150 pairs)       167 000

Inventory on 30 June 2019 (80 pairs)          68 000

• 1 500 pairs of shoes with a selling price of N$ 460 000 were sold during the year by the sales department.

REQUIRED:

Question 1: Prepare the following general ledger accounts:

1. Raw materials.
2. Work-in-progress.
3. Finished goods.
4. Allowance for unrealised profit.