The following balances were extracted from the book of Spiro Manufacturing on 30th April 2016
Factory machinery 80 000
Office fixtures 20 000
Provision for depreciation
Factory machinery 60 000
Office fixtures 8 000
Purchases of raw materials 85 000
Opening inventory ;
Raw material 10 150
work in progress 15 000
finished goods 21 200
Revenue 310 000
Purchases of finished goods 19 000
Factory manager's salaries 32 000
offices wages and salaries 41 900
Direct factory expense 5600
Indirect factory expense 9 800
Factory wages 47 000
Rent 10 000
Insurance 8 000
Marketing expenses 12 400
Distribution costs 9 850
Financial expenses 7 650
Provision for doubtful debts 400
Trade receivables 23 900
Trade payables 14 350
Bank 7 700 Dr
Capital 90 000
Drawings 16 600
Additional information at 30 April 2015
1 Inventory was valued as follows:
$
Raw materials 12 750
Work in progress 16 200
Finished goods 18 700
2 Insurance and rent are to be apportioned 80% to the factory and 20% to the office.
3 Financial expenses owing were $850.
4 Marketing expenses of $600 were prepaid.
5 Depreciation is to be charged as follows:
(i) Factory machinery at 25% per annum using the diminishing (reducing) balance method
(ii) Office fixtures at 15% using the straight-line method.
6 A debt of $1900 was considered irrecoverable. A provision for doubtful debts is to be maintained at 5%.
A. Prepare the manufacturing account of Spiro Manufacturing for the year ended 30 April 2016.
B. Prepare the income statement for the year ended 30 April 2016
C. Prepare the statement of financial position at 30 April 2016.
