ZIMSEC O Level Principles of Accounting: Example question Manufacturing Accounts
- Having looked at the nature of Manufacturing Accounts
- And the structure of these accounts
- It is time we look at a worked example
Manufacturing Accounts Example Question
E Makonese is a manufacturer. His trial balance at 31 December 20X8 is as follows:
| $ | $ | |
| Delivery van expenses | 1 760 | |
| Lighting and heating: | ||
| Factory | 7 220 | |
| Office | 1 490 | |
| Manufacturing wages | 72 100 | |
| General Expenses: | ||
| Factory | 8 100 | |
| Office | 1 940 | |
| Sales reps: commission | 11 688 | |
| Purchase of raw materials | 57 210 | |
| Rent | ||
| Factory | 6 100 | |
| Office | 2 700 | |
| Machinery (which cost $40 000) | 28 600 | |
| Office Equipment (Which cost $9 000) | 8 200 | |
| Office salaries | 17 740 | |
| Debtors | 34 200 | |
| Creditors | 9 400 | |
| Bank | 16 142 | |
| Sales | 194 800 | |
| Van (Which cost $6 800) | 6 200 | |
| Stocks at 31 December 20x7 | ||
| Raw materials | 13 260 | |
| Finished Goods | 41 300 | |
| Drawings | 24 200 | |
| Capital | 155 950 | |
360 150 | 360 150 |
Additional information:
- Stocks at 31 December 20X8: raw materials $14 510; finished goods $44 490. There is no work in
progress. - Depreciate machinery $3 000; office equipment $600; van $1 200.
- Manufacturing wages due but unpaid at 31 December 20X8 $550; office rent prepaid $140.
Required
- Prepare the manufacturing account for E. Makonese for the year ended 31 December 20×8
- Prepare the Income statement for E. Makonese for the year ended 31 December 20×8
- Prepare the Statement of Financial Position for E Makonese as at 31 December 20×8
The solution to this question can be found here
To access more topics go to the Principles of Accounts Notes.
