Reference no: EM132554600

Question 1: Using whichever of the following figures are required, Create a manufacturing account and Trading account for 2017. The manufacturing account should show clearly the prime cost of manufacture and the production cost of finished goods produced.

Inventory, 1 January 2017:

                        £

Raw materials 24,600

Partly finished goods 20,200

Finished goods 18,600

Inventory, 31 December 2017:

Raw materials 31,300

Partly finished goods 23,400

Finished goods 29,200

Purchases of raw materials 165,400

Carriage on raw materials 9,100

Salaries and wages: factory (including £44,500 for management and supervision) 151,400

Salaries and wages: general office 28,400

Rent and business rates (three-quarters works, one-quarter office) 3,000

Lighting and heating (seven-eighths works, one-eighth office) 5,600

Repairs to machinery 3,400

Depreciation of machinery 5,600

Factory direct expenses 730

Insurance of plant and machinery 860

Sales 406,120

Note: partly finished goods are valued at their production cost.