Reference no: EM132907816

The following information for the period ending June 30, 2015, was taken from the books of Furnishing Homes, manufacturers of decorative tiles.

$
Carriage in on raw materials 12 000
Opening sock of raw materials 40 000
Purchase of raw materials 160 000
Purchases returns 62 000
Closing stock of raw materials 30 000
Production wages 47 000
Direct factory wages 6 000
Work in progress- July 1, 2014 13 000
Work in progress- June 30, 2015 21 000
Overhead: Insurance 8 000
Salaries 28 000
Light & power 11 000
Telephone 7 500
Depreciation 12 500
Rent 15 000

Each overhead cost is apportioned on the following basis:
Factory 50%
Selling & distribution 20 %
General administration 30%
The number of decorative tiles done and sold during the period was 50 000 at $7 per tile.

REQUIRED

Problem A. Prepare the Manufacturing, Trading, Profit and Loss Account for Furnishing Homes for the period ending June 30, 2015.