Prepare Auchi Polytechnic Paint Manufacturing Account for the year ended 31st December, 2024. For maximum score, indicate; Cost Raw Materials Available for production, Cost of Raw Materials Used for Production, Prime Cost, Total Cost of Production.

Question

Asked on July 25, 2026Accounting

This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.

Accepted Answer · 2026-07-25T12:07:23.183Z

Here is the Manufacturing Account for Auchi Polytechnic Paint Manufacturing Company for the year ended 31st December 2024. All figures are in N'000. Auchi Polytechnic Paint Manufacturing Account For the year ended 31st December 2024 Step 1: Calculate Net Purchases of Raw Materials. Raw material purchased &= 120,000 \\ Add: Carriage inward of raw materials &= 10,000 \\ Less: Return outward of raw material &= (5,000) \\ Net Purchases of Raw Materials &= 120,000 + 10,000 - 5,000 \\ &= 125,000 Step 2: Calculate Cost Raw Materials Available for production (i). Opening Raw materials (1st January, 2024) &= 30,500 \\ Add: Net Purchases of Raw Materials &= 125,000 \\ Cost Raw Materials Available for production &= 30,500 + 125,000 \\ &= 155,500 i) Cost Raw Materials Available for production: N'000 155,500 Step 3: Calculate Cost of Raw Materials Used for Production (ii). Cost Raw Materials Available for production &= 155,500 \\ Less: Closing Raw materials (31st December, 2024) &= (25,000) \\ Cost of Raw Materials Used for Production &= 155,500 - 25,000 \\ &= 130,500 ii) Cost of Raw Materials Used for Production: N'000 130,500 Step 4: Calculate Prime Cost (iii). Cost of Raw Materials Used for Production &= 130,500 \\ Add: Direct labour - wages &= 50,000 \\ Add: Direct expense &= 20,000 \\ Prime Cost &= 130,500 + 50,000 + 20,000 \\ &= 200,500 iii) Prime Cost: N'000 200,500 Step 5: Calculate Factory Overheads. Depreciation: Factory machinery &= 1,500 \\ Factory rent &= 3,000 \\ Factory electricity &= 6,600 \\ Total Factory Overheads &= 1,500 + 3,000 + 6,600 \\ &= 11,100 Step 6: Calculate Total Cost of Production (iv). Prime Cost &= 200,500 \\ Add: Total Factory Overheads &= 11,100 \\ Total Manufacturing Cost &= 200,500 + 11,100 \\ &= 211,600 \\ Add: Work in progress 1/1/2024 (Opening WIP) &= 40,000 \\ Less: Work in progress 31/12/2024 (Closing WIP) &= (15,000) \\ Total Cost of Production &= 211,600 + 40,000 - 15,000 \\ &= 236,600 iv) Total Cost of Production: N'000 236,600 What's next? 📸

Accepted Answer · 2026-07-25T12:07:23.183Z

Here is the Manufacturing Account for Auchi Polytechnic Paint Manufacturing Company for the year ended 31st December 2024. All figures are in N'000. Auchi Polytechnic Paint Manufacturing Account For the year ended 31st December 2024 Step 1: Calculate Net Purchases of Raw Materials. Raw material purchased &= 120,000 \\ Add: Carriage inward of raw materials &= 10,000 \\ Less: Return outward of raw material &= (5,000) \\ Net Purchases of Raw Materials &= 120,000 + 10,000 - 5,000 \\ &= 125,000 Step 2: Calculate Cost Raw Materials Available for production (i). Opening Raw materials (1st January, 2024) &= 30,500 \\ Add: Net Purchases of Raw Materials &= 125,000 \\ Cost Raw Materials Available for production &= 30,500 + 125,000 \\ &= 155,500 i) Cost Raw Materials Available for production: N'000 155,500 Step 3: Calculate Cost of Raw Materials Used for Production (ii). Cost Raw Materials Available for production &= 155,500 \\ Less: Closing Raw materials (31st December, 2024) &= (25,000) \\ Cost of Raw Materials Used for Production &= 155,500 - 25,000 \\ &= 130,500 ii) Cost of Raw Materials Used for Production: N'000 130,500 Step 4: Calculate Prime Cost (iii). Cost of Raw Materials Used for Production &= 130,500 \\ Add: Direct labour - wages &= 50,000 \\ Add: Direct expense &= 20,000 \\ Prime Cost &= 130,500 + 50,000 + 20,000 \\ &= 200,500 iii) Prime Cost: N'000 200,500 Step 5: Calculate Factory Overheads. Depreciation: Factory machinery &= 1,500 \\ Factory rent &= 3,000 \\ Factory electricity &= 6,600 \\ Total Factory Overheads &= 1,500 + 3,000 + 6,600 \\ &= 11,100 Step 6: Calculate Total Cost of Production (iv). Prime Cost &= 200,500 \\ Add: Total Factory Overheads &= 11,100 \\ Total Manufacturing Cost &= 200,500 + 11,100 \\ &= 211,600 \\ Add: Work in progress 1/1/2024 (Opening WIP) &= 40,000 \\ Less: Work in progress 31/12/2024 (Closing WIP) &= (15,000) \\ Total Cost of Production &= 211,600 + 40,000 - 15,000 \\ &= 236,600 iv) Total Cost of Production: N'000 236,600 What's next? 📸

Prepare Auchi Polytechnic Paint Manufacturing Account for the year ended 31st December, 2024. For maximum score, indicate; Cost Raw Materials Available for production, Cost of Raw Materials Used for Production, Prime Cost, Total Cost of Production.

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Prepare Auchi Polytechnic Paint Manufacturing Account for the year ended 31st December, 2024. For maximum score, indicate; Cost Raw Materials Available for production, Cost of Raw Materials Used for Production, Prime Cost, Total Cost of Production.

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