Reference no: EM133133705
Question - Old Trafford LTD has provided the following as at 30 June 2021.
SH '000
Freehold land and building at cost 143,000
Plant and Machinery at Cost 105,000
Accumulated Depreciation On Plant & Machinery 23,000
Purchases Of Raw Materials 130,000
Sales 317,000
Factory Rates 6,500
Accounts Receivable 37,500
Accounts Payable 30,900
Wages (Including Sh 15,700 For Supervision 63,000
Direct Factory Expenses 9,100
Selling Expenses 11,000
Office Salaries And General Expenses 43,000
Bank 24,500
General Reserves Retained Profits 30,000
Retained Profits 18,000
Inventory 1 July 2020: Raw Material
Finished Goods 20,000
38,000
Dividend Paid: Preference Shares 840
Ordinary Shares 20,000
Additional information:
1. The inventory at 30 June 2021 was: raw materials22000, finished goods sh 35,000'
2. Salaries include SH 6,700 for director' fees
3. Depreciation is to be charged at 10 % on cost of plant and Machinery
Required - Prepare manufacturing account and statement of profit or loss for the year ending 30 June 2021.