The following transactions relate to a dairy, converting milk to cheese, for the month of May. Prepare ledger accounts which record the transactions.
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1 May |
Bought 600 drums of milk from supplier on credit, invoiced price being £90,000 |
|
1 May |
Bought cartons, cost £6,000 paid in cash |
|
2 May |
Returned to supplier one drum damaged in transit, £150 |
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3 May |
500 drums of milk issued to cheesemaking department, cost £75,000 |
|
4 May |
Issued two thirds of cartons to cheesemaking department, £4,000 |
|
14 May |
Paid cheesemakers’ wages £3,000 |
|
14 May |
Paid wages for cleaning and hygiene £600 |
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16 May |
Paid rent, rates and electricity in respect of printing, £8,000, in cash |
|
28 May |
Paid cheesemakers’ wages £3,000 |
|
28 May |
Paid wages for cleaning and hygiene £600 |
|
31 May |
Transferred all production of cheese in cartons to finished goods inventory. |
|
31 May |
No work in progress at end of month. |
|
31 May |
Finished goods stock value at £6,000 |