Reference no: EM133090723
Question - Eddie Sportcraft Ltd is a manufacturer of sport jerseys. The following accounts and amounts are extracted from the ledger accounts (unadjusted) as at 30 June 2021.
Sales 5,400,000
Prepaid insurance 24,000
Administrative salaries Expenses 975,000
Direct Labour 720,000
Finished Goods-1 July 2020 215,000
Work in Process-1 July 2020 45,000
Raw materials used 1,227,000
Plant energy costs 98,500
Indirect Labour 76,400
Advertising Expenses 140,000
Interest expenses 151,600
The following additional information is available:
1. The inventories as of 30 June 2021 were:
Work in process $75,500
Finished goods $28,000
2. On 1 March 2021 the company paid $24,000 for 12 months insurance cover on the factory. Prepaid insurance was debited at the time of the transaction.
3. Office salaries of $2,800 are unpaid and not recorded at 30 June 2021.
Required - Prepare a detailed income statement for the year ended 30 June 2021.