Date Posted:02:27:41 11/26/01 Mon Author:Acc & Econ lover Subject: Manu a/c
Q1
Using method of "adding manufacturing profit(MP) to finished gds",
Yr 1 opening stock:
$10,000 (cost)
$12,500 (cost + MP)
Yr 1 closing stock:
$20,000 (cost)
$25,000 (cost + MP)
Finished gds produced dur9 Yr 1:
$50,000 (cost + MP)
Sales = $250,000
In doing trading a/c, should we use amount in cost or cost + MP or else ??
Anyway, construct trading a/c.
Q2 Stock:
Opening finished gds ---: $ XX
Closing finished gds ---: $ XX
Is it possible that the examiner'll not state whether the amt shown at cost / cost + MP ??
If so, what above amt should be at (cost / cost + MP) if no specification ??
Thx for answering
Enter the above into the related a/cs and state the effect in final a/cs.
