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Yaba Enterprises is a manufacturer. The following balances were extracted from the books in December, 2024. You are required to prepare: (a) Manufacturing Account for the year ended 31st December 2024; (b) Trading, Profit and Loss Account for the year ended 31st December, 2024.

Accounting

ScanSolve AI Answer

Here is the Manufacturing Account for Yaba Enterprise for the year ended 31st December 2024:

Yaba EnterpriseManufacturing AccountFor the year ended 31st December 2024\begin{array}{c} \textbf{Yaba Enterprise} \\ \textbf{Manufacturing Account} \\ \textbf{For the year ended 31st December 2024} \\ \end{array} ParticularsGHSGHSOpening Stock of Raw Materials (1/1/2024)730,000Add: Purchases of Raw Materials1,980,000Add: Carriage on Raw Materials110,000Cost of Raw Materials Purchased2,090,000‾Raw Materials Available for Use2,820,000Less: Closing Stock of Raw Materials (31/12/2024)(680,000)‾Raw Materials Consumed2,140,000Direct Labour:Factory Wages1,400,000Wages and Salaries (2/5 \times400,000)160,000‾Total Direct Labour1,560,000Direct Expenses:Direct Expenses300,000Royalties200,000‾Total Direct Expenses500,000Prime Cost4,200,000Factory Overheads:Indirect Expenses100,000Depreciation of Machinery140,000Depreciation of Fixtures and Fittings70,000Factory Light and Power250,000Factory Insurance80,000Vehicle Maintenance (1/4 \times60,000)15,000Stationery (1/3 \times120,000)40,000Rent and Rates (2/5 \times240,000)96,000‾Total Factory Overheads791,000‾Cost of Production (before Work-in-Progress adjustment)4,991,000Add: Opening Work-in-Progress (1/1/2024)280,000Less: Closing Work-in-Progress (31/12/2024)(180,000)‾Cost of Production5,091,000\begin{array}{lrr} \hline \textbf{Particulars} & \textbf{GHS} & \textbf{GHS} \\ \hline \text{Opening Stock of Raw Materials (1/1/2024)} & & 730,000 \\ \text{Add: Purchases of Raw Materials} & 1,980,000 & \\ \text{Add: Carriage on Raw Materials} & 110,000 & \\ \text{Cost of Raw Materials Purchased} & \underline{2,090,000} & \\ \text{Raw Materials Available for Use} & & 2,820,000 \\ \text{Less: Closing Stock of Raw Materials (31/12/2024)} & & \underline{(680,000)} \\ \textbf{Raw Materials Consumed} & & \textbf{2,140,000} \\ & & \\ \text{Direct Labour:} & & \\ \text{Factory Wages} & 1,400,000 & \\ \text{Wages and Salaries (2/5 \times 400,000)} & \underline{160,000} & \\ \textbf{Total Direct Labour} & & \textbf{1,560,000} \\ & & \\ \text{Direct Expenses:} & & \\ \text{Direct Expenses} & 300,000 & \\ \text{Royalties} & \underline{200,000} & \\ \textbf{Total Direct Expenses} & & \textbf{500,000} \\ & & \\ \textbf{Prime Cost} & & \textbf{4,200,000} \\ & & \\ \text{Factory Overheads:} & & \\ \text{Indirect Expenses} & 100,000 & \\ \text{Depreciation of Machinery} & 140,000 & \\ \text{Depreciation of Fixtures and Fittings} & 70,000 & \\ \text{Factory Light and Power} & 250,000 & \\ \text{Factory Insurance} & 80,000 & \\ \text{Vehicle Maintenance (1/4 \times 60,000)} & 15,000 & \\ \text{Stationery (1/3 \times 120,000)} & 40,000 & \\ \text{Rent and Rates (2/5 \times 240,000)} & \underline{96,000} & \\ \textbf{Total Factory Overheads} & & \underline{\textbf{791,000}} \\ & & \\ \text{Cost of Production (before Work-in-Progress adjustment)} & & 4,991,000 \\ \text{Add: Opening Work-in-Progress (1/1/2024)} & & 280,000 \\ \text{Less: Closing Work-in-Progress (31/12/2024)} & & \underline{(180,000)} \\ \textbf{Cost of Production} & & \boxed{\textbf{5,091,000}} \\ \hline \end{array}
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