Scribd Logo
Upload

Welcome to Scribd!

  • Manufacturing - Revision

    Uploaded by

    Nang Phyu Sin Yadanar Kyaw
    13 views2 pages
    Tornby, a toy manufacturer, provided inventory information for the year ended October 31, 2017. Inventory levels decreased for finished goods but increased for raw materials and work in progress. Additional expenses included prepaid insurance of $250 and wages payable of $1,400. Manufacturing overhead such as utilities were allocated 75% to factory and 25% to administration. Factory machinery depreciates at 25% reducing balance while office equipment depreciates at 20% straight line.

    Original Description:

    Revision note - manufacturing

    Original Title

    Manufacturing -revision

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Tornby, a toy manufacturer, provided inventory information for the year ended October 31, 2017. Inventory levels decreased for finished goods but increased for raw materials and work in progress. Additional expenses included prepaid insurance of $250 and wages payable of $1,400. Manufacturing overhead such as utilities were allocated 75% to factory and 25% to administration. Factory machinery depreciates at 25% reducing balance while office equipment depreciates at 20% straight line.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    13 views2 pages

    Manufacturing - Revision

    Uploaded by

    Nang Phyu Sin Yadanar Kyaw
    Tornby, a toy manufacturer, provided inventory information for the year ended October 31, 2017. Inventory levels decreased for finished goods but increased for raw materials and work in progress. Additional expenses included prepaid insurance of $250 and wages payable of $1,400. Manufacturing overhead such as utilities were allocated 75% to factory and 25% to administration. Factory machinery depreciates at 25% reducing balance while office equipment depreciates at 20% straight line.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Manufacturing -revision Tr Khin Lay

    Tornby, a manufacturer of children’s toys, provided the following information for the year
    ended 31 October 2017

    Inventory 1 November 2016 $


    Finished goods 68 000
    Raw materials 45 000
    Work in progress 13 650
    Inventory 31 October 2017
    Finished goods 62 000
    Raw materials 50 600
    Work in progress 16 105

    1
    Manufacturing -revision Tr Khin Lay

    Additional information
    • On 31 October 2017 insurance paid in advance amounted to $250 and direct factory wages
    owing were $1 400.
    • Heat and light, insurance, and rent and rates are to be apportioned ¾ to the factory and ¼ to
    the administration building.
    • Factory machinery is depreciated at the rate of 25% on the reducing balance basis.
    • Office equipment is depreciated at the rate of 20% on a straight line basis.
    (a) Prepare the manufacturing account for the year ended 31 October 2017.
    (b) Prepare the income statement for the year ended 31 October 2017.

    You might also like