Reference no: EM133177733

Question - Bridle Ltd is a small manufacturing company producing leather straps and other security products. The most recent business income statement is shown below.

Bridle Ltd - Trading account For the year ended 31st March 2013

£

Sales turnover 285,000

Cost of sales (213,300)

Gross profit: 71,700

Other information:

Raw materials opening inventory was valued at £3,000 and raw materials purchases were£28,000. The total cost of raw materials consumed was £27,800.

The cost of direct labour was £90,000 and total production prime cost was £135,800 (including direct expenses).

Indirect production overheads were £80,000 (including machinery depreciation of £20,000).

Opening and closing stocks of work - in - progress inventory was valued at £6,000 and £6,500 respectively.

Opening and closing stocks of finished goods inventory were valued at £12,000 and £14,000 respectively.

Required - Prepare the manufacturing account of Bridle Ltd for the year ended 31st March 2013 and reconcile your work to the cost of sales value provided above.