Reference no: EM132584834
J. Jones Ltd's' trial balance for the year ended 31 December 2006 is as follows;
|
Purchase of raw materials/sales
|
258,000,000
|
482,000,000
|
|
Fuel and light
|
21,000,000
|
|
|
Administration salaries
|
17,000,000
|
|
|
Factory wages
|
59,000,000
|
|
|
Carriage outwards
|
4,000,000
|
|
|
Rent and business rates
|
21,000,000
|
|
|
Returns inwards
|
7,000,000
|
|
|
General office expenses
|
9,000,000
|
|
|
Repairs to plant and machinery
|
9,000,000
|
|
|
Stock at 1 January 2006:
|
|
|
|
Raw materials
|
21,000,000
|
|
|
Work in progress
|
14,000,000
|
|
|
Finished goods
|
23,000,000
|
|
|
Trade receivables/trade payables
|
20,000,000
|
37,000,000
|
|
Capital
|
|
457,000,000
|
|
Freehold premises
|
410,000,000
|
|
|
Plant and machinery
|
80,000,000
|
|
|
Accumulated depreciation on plant and machinery
|
|
8,000,000
|
|
Cash in hand
|
11,000,000
|
|
|
|
984,000,000
|
984,000,000
|
Additional Information
Make provision for the following:
1) Stock in hand at 31 December 2006:
Raw materials -1C25, 000,000
Work in progress - K11, 000,000
Finished goods - K26, 000,000
2) Depreciation on plant and machinery using the straight line method is 10%.
3) 80% of fuel and light and 75% of rent and rates to be charged to the factory.
4) Allowance for receivables to be charged at 5% of the trade receivables.
5) K4, 000,000 is outstanding for fuel and light.
6) The value of rent and rates paid in advance is KS, 000,000.
Question 1: Prepare J. Jones Ltd manufacturing cost account and an income statement for the year ended 31 December 2006 and a statement of financial position as at the year end.