Manufacturing Account for the 6 months ended 31 December 2013

Raw materials 80
Opening inventory 780
Purchases 128 908
Carriage in 988
-112
Closing inventory 876
Cost of raw materials consumed
Manufacturing wages 480
Factory power 88 568
Prime Cost 1444
Factory overheads:
Electricity (138 x 2/3) 92
Rent andrates (326 - 26) x 3/5 180
Factory expenses 56
Depreciation on machinery (160 x 20%)/2 16 344
1788
Work in Progress (110 - 146) -36
Cost of production 1750

Income Statement for 6 months ended at 31 December 2013

Sales
less Returns

Finished goods 204

Opening inventory 150 354
Purchases 1752
Cost of Production 2106
210
Closing inventory
Gross Profit 7
Electiricity 46
Rent 120
General expenses 45
Bad debts 80
Profit for the year
er 2013

2013
3474
60
3414

1896
1518

298
1220