Reference no: EM132933610

The financial year of ACTAG Manufacturers ends on 31/12/2020. They provided below information.

At 1/1/2020

Inventory- raw materials 52,000.00
finished goods 63,200.00
work in progress 21,500.00

for the year ended 31/12/2020

purchase of raw materials 368,200.00
purchase of finished goods 5,100.00
Revenue 745,600.00
Wages - factory direct wages 49,850.00
factory indirect salaries 28,600.00
office and sales salaries 32,400.00
Factory expenses 36,400.00

at 31/12/2020

Inventory- raw materials 53,600.00
finished goods 59,400.00
work in progress 19,500.00

• Select the relevant figures and prepare the manufacturing account of ACTAG manufacturers for the year ended 31/12/2020.
• Select 2 items in this list which should not appear in a manufacturing account and explain why they are not included.

Explain the difference between
Prime cost and factory overhead cost
State an alternative name for factory overhead cost

Problem (i) Explain the term work in progress.

Problem (ii) State why it is necessary to adjust the cost of production for work in progress? please give answer for the all question as soon as possible