BridleLtdisasmallmanufacturingcompanyproducingleatherstrapsandother…

Question Answered step-by-step BridleLtdisasmallmanufacturingcompanyproducingleatherstrapsandother… Bridle Ltd is a small manufacturing company producing leather straps and other security products.The most recent business income statement is shown below. Bridle Ltd – Trading accountFor the year ended 31st March 2013  £Sales turnover285,000Cost of sales(213,300)Gross profit:71,700Other information:Raw materials opening inventory was valued at £3,000 and raw materials purchases were£28,000. The total cost of raw materials consumed was£27,800.The cost of direct labour was £90,000 and total production prime cost was£135,800 (including direct expenses)Indirect production overheads were £80,000 (including machinery depreciation of £20,000)Opening and closing stocks of work – in – progress inventory was valued at£6,000 and £6,500 respectivelyOpening and closing stocks of finished goods inventory were valued at £12,000 and £14,000 respectivelyRequired:Prepare the manufacturing account of Bridle Ltd for the year ended 31st March 2013 and reconcile your work to the cost of sales value provided above. Accounting Business Managerial Accounting ACCOUNTING AAF003 Share QuestionEmailCopy link Comments (0)