Question

Q3. Manufactring Company. Kaluwax Ltd. Manufacturers have one product which it sells to the wholesale trade. The following trial balance was extracted from the books of the company at 30 April 2001. Sh. Sh. Stocks at 1 May 2000: Raw material, at cost 350,000 Work in progress, at factory cost 1.800,000 Finished goods (3500 units) at factory cost 3.500.000 Raw materials purchased 3,950,000 Sales (12000 units) 18,000,000 Manufacturing wages 3,000,000 Factory rent and rates 1,400,000 Factory light, heat and power 655.000 Plant at cost 6,000,000 Plant depreciation at 1 May 2000 2,800,000 Works manager's salary 245.000 Plant repairs 400.000 Administrative overheads 1.600.000 Fucory lease at cost (20 years duration) 4,000,000 Amortization at 1 May 2000 1.200.000 Share capital 7,500,000 Debtors 3050,000 Bank balance 1600.000 Creditors 2,450,000 Carriage inwards 200.000 31,950,000 31,950,000 The following additional information is available: 1. Plant depreciation is to be provided at 10% on the cost of plant owned at the year end.

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previous year stock 1 may 2000 please consider this previous stock

dear expert can u please tell me about what nèed more information you required? thanks

Answer 1

Refer the below images for the above mentioned questions, in a detailed way of solution.

solution : a) Manufacturing - Kalowax ltd trading and profit and ended 30 April 2001. loss Alc for the year sh Sh particolars opening Stock of raw materials purchase of raw materials Addi - Carriage inwards 350000 3950000 200 000 4 500 000 (5000oo) Less & closing cost of raw Manufacturing Stocic of raw materials expensy materials consumed 4 000 000 3000000 prime cost 700000 1400000 655000 factory overhead: Factory rent up rates Factory light, Heat y power Depreciation of plant worries manager Salary plant repairs Amortization of lease on factory Factory cost of production Addi- opening work in progress 600 000 245.00 400000 200000 3500000 1000000 1800000 12300000 (2300000) Less - closing work in progress & cost of goods produced 10 000 000

18 000 000 Sales Lessin cost of Sales : opening Stock of cost of goods goods 3500000 finished produced 10 000 000 13 500 000 LESS :- goods (1500000), (12000000) 6000 000 closing stock of finished Cross profit Administrative overheads Net profit » (1800000) 4200000

Kaloway Ltd Balance Sheet AS AT 30th April 2001 Shs Shs particolars Non corrent Assets: Factory lease 4 000 000 6000000 1400000 3400000 2 600 000 2600.000 Plant 10 000 000 4800000 5200 000 current Assets : Stock, raw materials: Work in progress : Finished goods : 50000 2300000 11500000 3050000 1600.000 8950000 Debtors Bank Balance Total Assets 14 Noooo Equity ý Liabilnes : capital & Reserves: Share Capital Net profit 7500000 4200000 11700 000 current liabilities: creditors 2450000 14150ooo Total Equity & liabilities →

shs Manufacturing Account Extract : particulars Production cost Add: - 25 of production cost (ondg profit) 10000 000 2 500 000 12500000 chits produced (10,000 units) Unit cost = 12500000 10000 < 1250 * Kalo wax Trading Ltd profit y Loss nic particolars Shs 1800000 Sales Less - cost of sales : opening Stock of finished goods (3800 x 1250) Add: - Market value of goods completed Less - closing Stack of finished goods (1500x 1250) Gross profit Addi Manufacturing profit 4375.000 12500000 16875000) (15000ooo) 3 000 000 a 500000 5500000 Less - expenses : overhead administration (1800000) 3700000 875000 (375000) prov for ungealised for unrealed Add: - Opening Stock figure Less: closing Stock figure Profit r unrealis Profit 4200 000 Net profit

cost per unit: 10000000 10000 \{\ding c : ☺ working for Closing stock in units : opening Stock 3500 Manufactured 13500 Less! - Sold Units (1 2000) closing stock 10000 Toral cost 1000 = (1500X sh 1000) T500 unrealized profit on closing stock: (1500000 x 25-1-) = 375000 closing stock of 1875000 has a profit of (1875000 - 1500000) sh 375000 included which will be deducted from stock figure in the balance Sheet-