Manufacturing accounts — practice question

Salman runs a footwear factory, and he supplies all three nearby shoe shops. He makes up his financial statements to 30 April each year. As at 30 April 2023, the balances on Salman’s ledger accounts were: Opening inventory on 1 May 2022: Raw materials $8190 Work in progress $15200 Finished goods $23860 Purchases of raw materials $78420 Purchases of finished goods $90144 Wages: Factory supervisor $27500 Factory operatives $52396 Rates and insurance $17528 Factory electricity $11442 General factory expenses $8244 Factory equipment - at cost $90000 Factory equipment - provision for depreciation $43920 Bank balance $31000 debit Further details: 1 Inventory at 30 April 2023: Raw material $8000 Work in progress $16100 Finished goods $24590 2 Salman applies a mark-up of 50% to his cost of sales. 3 Rates and insurance are to be divided three quarters to the factory and one quarter to the office. 4 On 30 April 2023, factory electricity of $1048 had not yet been paid. 5 Factory equipment is depreciated at 20% per annum using the reducing balance method.