Mr. Prakash runs a factory which produces Pressure Cookers. The following details were obtained about his manufacturing expenses for the year ended…

CA Foundation · Accounting · PYQS · June 2024
Mr. Prakash runs a factory which produces Pressure Cookers. The following details were obtained about his manufacturing expenses for the year ended 31 st March, 2024: Amount (₹) Opening Work -in – Progress 6,25,000 Closing Work –in Progress 7,15,000 Opening Inventory of Raw material 5,85,000 Closing Inventory of Raw material 4,70,000 Purchases 18,74,000 Purchase Returns 95,000 Indirect Material 1,88,000 Direct Wages 3,97,000 Indirect Wages 82,000 Power & Electricity 1,76,000 Repairs and Maintenance 2,65,000 Depreciation on Factory Shed 1,44,000 Depreciation on Plant & Machinery 1,62,000 Sale of scrap 36,000 You are required to prepare Manufacturing Account for the year ended 31 st March, 2024.

Suggested Answer and Working Notes:

In the Books of Mr. Prakash Manufacturing Account for the year ended on March, 31,2024 Particulars ₹ Amount ₹ Particulars Amount ₹ To Opening W.I.P. 6,25,000 By Closing W -I-P 7,15,000 To Raw Material Consumed: By Sale of Scrap 36,000 Opening inventory 5,85,000 By Trading A/c - Cost of finished goods transferred 31,82,000 Purchases 18,74,000 24,59,000 Less: Returns (95, 000) 23,64,000 Less: Closing inventory (₹ 4,70,000) 18,94,000 To Direct Wages 3,97,000 To Manufacturing Overhead: Power and Electricity 1,76,000 Indirect Wages 82,000 Indirect Materials 1,88,000 Repairs & Maintenance 2,65,000 Depreciation on Factory Shed 1,44,000 Depreciation on Plant & Machinery 1,62,000 10,17,000 39,33,000 39,33,000

Topics: Preparation of Final Accounts of Sole Proprietors, Bank Reconciliation Statement

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