Accounting 9706 · AS & A Level · Preparation of financial statements
Preparation of financial statements — practice question
T plc is a manufacturing business. It has used the same rate to account for factory profit for several years. The summarised figures below are taken from its statements of financial position at 31 December 2018 and 31 December 2017.
(a)[8]
Prepare the manufacturing account for the year ending 31 December 2018.
(b)[10]
Prepare the income statement for the year ending 31 December 2018.
(c)[5]
Discuss the points the directors should assess when deciding whether to raise the inventory of raw materials.
(d)[2]
Explain why prime cost changes when production levels change.
Worked solution & mark scheme
This 25-mark question has a full step-by-step worked solution and mark scheme.