Choose the correct answer for each question.
Information needed to complete quiz
Web supplement – The accounts of manufacturing business
Questions 3 – 5
Cedric runs a manufacturing business. At his year end, 31 May 20X4, he has
the following balances relating to the costs of factory production:
£ | |
| Purchases returns (of raw materials) | 876 |
| Stock of raw materials at 1 June 20X3 | 12 407 |
| Depreciation of factory machinery | 9 882 |
| Work-in-progress at 1 June 20X3 | 5 224 |
| Purchases of raw materials | 100 442 |
| Factory cleaning | 3 933 |
| Stock of raw materials at 31 May 20X4 | 10 296 |
| Direct factory wages | 88 760 |
| Factory supervisor’s salary | 18 827 |
| Factory rental | 22 400 |
| Factory insurance | 3 290 |
| Work-in-progress at 31 May 20X4 | 6 969 |
Questions 6 – 8
Clemence makes shelves and fittings for refrigerators. Her expenses for the
year ending 31 March 20X7 include the following:
£ | |
| Purchases of raw materials | 98 989 |
| Repairs to factory machinery | 276 |
| Work-in-progress at 31 March 20X7 | 1 221 |
| Import duties on raw materials purchases | 1 000 |
| Factory supervision costs | 10 289 |
| Insurance | 2 325 |
| Raw materials stock at 31 March 20X7 | 9 921 |
| Factory rental | 12 200 |
| Administration staff salaries | 12 700 |
| Raw materials purchases returns | 787 |
| Electricity | 5 200 |
| Work-in-progress 1 April 20X6 | 1 860 |
| Sundry administration expenses | 6 286 |
| Raw materials stock at 1 April 20X6 | 8 436 |
Notes:
1. The electricity cost in the list above is for both factory and administrative
offices. ¾ of the total relates to the factory.
2. The insurance cost in the list above is for the whole business. 4/5 of it
relates to the factory.
3. The factory contains machinery which cost £58 500. Clemence’s
depreciation policy is to charge depreciation at 10% on cost. There were no
acquisitions of disposals of machinery during the year ending 31 March 20X7.None
of the machinery is fully depreciated.
Questions 9 to 10
Cameron manufactures components for the motor industry. In the month of February
20X9 the production line has been busy manufacturing a single type of component.
Costs are as follows:
£ | |
| Raw materials | 14 850 |
| Direct labour | 18 000 |
| Factory rental | 2 700 |
| Factory cleaning | 680 |
| Supervisory and other factory costs | 1 850 |
The factory manufactured 10 000 components in the month.