The following trial balance was extracted from the books of G & E Production Company Ltd on 31 December 2018 and presented to you the Financial Accountant:
Trial Balance
Details/Accounts | Dr $ | Cr $ |
Purchases of direct raw materials | 24,200,000 | |
Stock of direct raw materials 1 January 2018 | 5,500,000 | |
Wages paid to manufacture goods | 12,000,000 | |
Insurance | 2,000,000 | |
Electricity | 1,450,000 | |
Cash at bank | 28,000,000 | |
Accounts payable | 3,500,000 | |
Discounts | 450,000 | 500,000 |
Return of direct raw materials | 200,000 | |
Cash in hand | 600,000 | |
Work-in-progress 1 January 2018 | 3,000,000 | |
Salaries | 3,500,000 | |
Returns inward of finished goods | 300,000 | |
Carriage inwards of direct raw materials | 1,000,000 | |
Indirect raw materials 1 January 2018 | 2,500,000 | |
Accounts receivable | 7,500,000 | |
Provision for bad and doubtful debts | 75,000 | |
Machinery | 10,000,000 | |
Accumulated depreciation machinery | 4,000,000 | |
Office furniture | 2,000,000 | |
Purchase of indirect raw materials | 2,500,000 | |
Motor vehicles | 14,000,000 | |
Accumulated depreciation motor vehicles | 2,800,000 | |
Finished goods 1 January 2018 | 6,000,000 | |
Provision for unrealized profit | 1,000,000 | |
Indirect wages | 3,000,000 | |
Bank loan | 2,550,000 | |
Rent | 2,400,000 | 500,000 |
Capital | 55,625,000 | |
Stationery | 250,000 | |
Bad debts | 200,000 | |
Licence fee | 4,000,000 | |
Sales | 69,300,000 | |
Carriage outwards | 2,200,000 | |
Salesmen commission | 1,500,000 | |
140,050,000 | 140,050,000 |
Notes:
The company adds 20% mark-up to its cost of production.
The provision for bad and doubtful debts is to be increased to 1.5% of debtors.
$200,000 of the insurance relates to 2019.
Rent payable is to be apportioned 75% factory; 25% office.
Depreciation is to be charged as follows: Machinery 10% Reducing balance; Motor vehicles 10% Straight line; Office furniture 10% on cost.
On 31 December 2018, $50,000 was outstanding for stationery.
Stocks as at 31 December 2018 were as follows: Direct raw materials, $4,500,000;
Work-in-progress, $4,000,000; Finished goods, $4,500,000; Indirect raw materials, $2,000,000
1/5 of the amount paid for insurance is to be allocated to the office, while 60% of the electricity relates to the factory.
The motor vehicles are used equally between the factory and the office.
Required
Using the ratios calculated above and the information relating to industry average, prepare a two page report on the financial performance G & E Production Company Ltd when compared to industry standards. (15 mark
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The following trial balance was extracted from the books of G & E Production Company Ltd on 31 December 2018 and presented to you the Financial Accountant: Trial Balance Details/Accounts Dr $ Cr $ Purchases of direct raw materials 24,200,000 Stock of direct raw materials 1 January 2018 5,500,000 Wages paid to manufacture goods 12,000,000 Insurance 2,000,000 Electricity 1,450,000 Cash at bank 28,000,000 Accounts payable 3,500,000 Discounts 450,000 500,000 Return of direct raw materials 200,000 Cash in hand 600,000 Work-in-progress...
The following trial balance was extracted from the books of G & E Production Company Ltd on 31 December 2018 and presented to you the Financial Accountant: Trial Balance Details/Accounts Dr $ Cr $ Purchases of direct raw materials 24,200,000 Stock of direct raw materials 1 January 2018 5,500,000 Wages paid to manufacture goods 12,000,000 Insurance 2,000,000 Electricity 1,450,000 Cash at bank 28,000,000 Accounts payable 3,500,000 Discounts 450,000 500,000 Return of direct raw materials 200,000 Cash in hand 600,000 Work-in-progress...
The following trial balance was extracted from the books of G & E Production Company Ltd on 31 December 2018 and presented to you the Financial Accountant: Trial Balance Details/Accounts Dr $ Cr $ Purchases of direct raw materials 24,200,000 Stock of direct raw materials 1 January 2018 5,500,000 Wages paid to manufacture goods 12,000,000 Insurance 2,000,000 Electricity 1,450,000 Cash at bank 28,000,000 Accounts payable 3,500,000 Discounts 450,000 500,000 Return of direct raw materials 200,000 Cash in hand 600,000 Work-in-progress...
The following trial balance was extracted from the books of G
& E Production Company Ltd on 31 December 2018 and presented to
you the Financial Accountant:
Trial Balance
Details/Accounts
Dr $
Cr $
Purchases of direct raw materials
24,200,000
Stock of direct raw materials 1 January 2018
5,500,000
Wages paid to manufacture goods
12,000,000
Insurance
2,000,000
Electricity
1,450,000
Cash at bank
28,000,000
Accounts payable
3,500,000
Discounts
450,000
500,000
Return of direct raw materials
200,000
Cash in hand
600,000
Work-in-progress...
Meduling 1 Header Paragraph 5 - - - - - Question 4 (CLO) The following Trial Balance was prepared from the books of Maxwell Productions Ltd on December 31, 2010 and presented to you the Financial Accountant for analysis: Trial Balance Details Accounts Dr $ Cr$ Insurance 1.200,000 Direct expenses 4,000,000 Bills payable 150,000 Net sales 80,000,000 Office furniture and fittings 4,500,000 Accumulated depreciation on furniture & fittings 900,000 Return outwards of direct raw materials 330,000 Rent 3,000,000 500.000 Bank...
Joytoys Manufacturers had a policy of transferring factory production to the sales department at a profit of 10% on total cost of production of finished goods. The following particulars related to the records of the firm for the period 1 January 2000 to 31 December 2000. Balances 1 January 2000 Raw materials Work in progress Finished goods Direct wages due Direct wages prepaid Electricity due Purchases of raw materials for the year Carriage inwards Customs duty Purchases returns Raw materials...
Joytoy manufacturers had a policy of transferring factory production to the sales department at a profit of 10% on total cost of production of finished goods. The following particulars related to the records of the firm for the period 1 January 2000 to 31 December 2000. Balances 1 January 2000 Raw materials 20 000 30 000 55 000 Work in progress Finished goods Direct wages due Direct wages prepaid 400 200 Electricity due 800 Purchases of raw materials for the...
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