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Roy Reds Ltd is a Manufacturing Company.The Following Ledger account balances were extracted from the books...

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Accounting

Roy Reds Ltd is a Manufacturing Company.The FollowingLedger account balances were extracted from the books of thecompany for the year ended December 31,2004

stocks as at January1,2004:

Raw materials$40000,Partly manufactured good (WIP)$50000,Finished Goods $37000

Stocks as at December 31,2004:

Raw Materials $30000,Partly Manufactured goods (WIP)$60000 Finished Goods $45000

Other balances:

Purchases of raw materials$136000,freight and carriageon raw materials $5000,production workers salary $170000,Rent andRates$8000,Gas and Fuel $15000,office workers pay$20000,Depreciation of productive machinery and plant $10000,sales$550000

Notes:

Rent and rates,gas and fuel must be apportioned 60% tofactory and 40% to office.

Required:

Prepare the Manufacturing,Trading and Profit and lossAccounts for the period ending 31December 2004(clearly indicate thefollowing in your answer)

1 Prime Cost

2 Factory Overheads

3 Cost of Production

4 Gross Profit

5 Net Profit

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