From the trial balance of Folushola Fashions Lt... - SS2 Accounting Preparation of Trading, Profit And Loss Account, Manufacturing Account, And Balance Sheet Question
From the trial balance of Folushola Fashions Ltd. on 31 December 2021, prepare the manufacturing account and trading, profit and loss account for the year ended 31 December 2022, given the following additional information:
-
Closing stock of raw materials: ₦12500
-
Closing stock of finished goods: ₦45700
-
Closing work in progress: ₦8200
TRIAL BALANCE AS OF DECEMBER 31, 2021
|
Account Title |
Debit (₦) |
Credit (₦) |
|
Machinery |
180000 |
|
|
Carriage inward |
25000 |
|
|
Factory rent |
85000 |
|
|
Factory wages |
180000 |
|
|
Factory utilities |
42500 |
|
|
Office expenses |
24000 |
|
|
Raw materials inventory |
58500 |
|
|
Work in progress |
19500 |
|
|
Finished goods inventory |
92000 |
|
|
Sales |
2970000 |
|
|
Discounts allowed |
30000 |
|
|
Debtors |
367500 |
|
|
Creditors |
123000 |
|
|
Cash at bank |
112500 |
|
|
Advertising expenses |
35000 |
|
|
Insurance expenses |
16500 |
|
|
Packing expenses |
25000 |
|
|
Selling expenses |
38000 |
|
|
Income tax expense |
50000 |
|
|
Dividends |
45000 |
|
|
Direct labour |
300000 |
|
|
Retained earnings |
318000 |
|
|
Purchases |
62500 |
|
|
Administrative salaries |
300000 |
|
|
Total |
1805000 |
3,67500 |
Answer:
MANUFACTURING ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022
|
(₦) |
(₦) |
|
|
Raw Materials Inventory Add: Purchases Add: Carriage Inwards Less: Closing Stock of Raw Materials Add: Direct Labor Prime Cost Factory Overhead Expenses: Factory Rent Factory Utilities Factory Wages Add: Work in Progress Less: Closing Work in Progress Cost of Production Cost of Production b/d |
58500 62500 25000 145500 12500 85000 42500 180000 |
|
133000 300000 433000 307500 125500 19500 106000 8200 97800 97800 |
Trading, profit and loss account
For the year ended 31 December 2022
Sales Opening Stock of Finished Goods Add: Production Cost of Goods Completed Less: Closing Stock of Finished Goods Gross profit Less: Administrative Expenses Retained earnings Dividends Administrative Salaries Less: Selling/Distribution Expenses: Office expenses Advertising expenses Insurance expenses Packing expenses Selling expenses Income tax expense Discount allowed Net profit Gross profit b/d |
(₦) 2970000 92000 97800 3159800 45700 31800 45000 300000 24000 35000 16500 25000 38000 50000 30000 |
(₦) 3114000 376800
218500 595300 2518700 3114000 |
|
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