Manufacturing accounts — practice question

Toyah runs a factory that manufactures dolls’ houses. Her financial year ends on 31 January. On 31 January 2024, the balances in her ledger accounts were as follows: Inventory at 1 February 2023: raw materials $12 400, work in progress $16 970, finished goods $14 825 Revenue $390 100 Purchases of raw materials $143 000 Wages: factory operatives $51 000, factory supervisor $19 000, sales staff $30 000 Factory electricity $16 000 Rates and insurance $16 200 General factory expenses $6 155 Factory machinery at cost $120 000 Factory machinery - provision for depreciation $52 500 Further information: Inventory at 31 January 2024: raw materials $11 205, work in progress $17 682, finished goods $13 480 Rates and insurance are to be shared $rac{2}{3}$ to the factory and $rac{1}{3}$ to the office. At 31 January 2024, unpaid general factory expenses amounted to $235. Factory machinery is depreciated at 25% per annum using the reducing balance method. During the year ended 31 January 2024, the factory made 6936 dolls’ houses. Idir, who competes with Toyah, has decided to stop trading. He has offered to sell his finished goods inventory to Toyah at a reduced price if she pays in cash immediately. The total price of those items is $9600. Toyah has $1415 cash at bank.