The following data relate to the financial records of Bellwood Ltd, a manufacturer, for the year ended 30 June 2019.
|
£ |
|
|
Inventory of raw materials as at 1 July 2018 |
15,665 |
|
Inventory of work-in-progress as at 1 July 2018 |
24,411 |
|
Purchases of raw materials |
298,080 |
|
Direct power |
11,180 |
|
Direct labour |
301,500 |
|
Royalties |
5,560 |
|
Supervisory wages |
56,110 |
|
Factory rent |
17,891 |
|
Machinery depreciation |
6,600 |
|
Factory maintenance |
4,513 |
|
Inventory as at 30 June 2019 was valued as follows: |
|
|
Work-in-progress: |
31,241 |
|
Raw materials: |
14,186 |
The manufacturing account based on this data for the appropriate time period would appear as follows:
Bellwood Ltd Manufacturing account for year ended 30 June 2019
|
£ |
£ |
|
|
Opening inventory of raw materials |
15,665 |
|
|
Add Purchases of raw materials |
298,080 |
|
|
313,745 |
||
|
Less Closing inventory of raw materials |
14,186 |
|
|
Cost of raw materials consumed |
299,559 |
|
|
Direct labour |
301,500 |
|
|
Direct power |
11,180 |
|
|
Royalties |
5,560 |
|
|
Prime cost |
617,799 |
|
|
Add Indirect factory overheads: |
||
|
Supervisory wages |
56,110 |
|
|
Factory rent |
17,891 |
|
|
Machinery depreciation |
6,600 |
|
|
Factory maintenance |
4,513 |
85,114 |
|
702,913 |
||
|
Add Opening work-in-progress |
24,411 |
|
|
727,324 |
||
|
Less Closing work-in-progress |
31,241 |
|
|
Production cost of goods completed |
696,083 |