Manufacturing accounts — practice question

Sara runs a clothing factory. She supplies the clothing to a small number of nearby shops. She gives 30 days credit. As at 30 September 2023, the balances in Sara’s ledger accounts were as follows. Inventory at 1 October 2022: Raw materials $4875, Work in progress $8125, Finished goods $12890 Purchases of raw materials $56400 Wages: Machine operators $43300, Factory supervisor $25000, Delivery vehicle driver $14250 Rates and insurance $29600 General factory expenses $9650 Factory machinery - at cost $80000 Factory machinery - provision for depreciation $35000 Trade receivables $27000 Cash at bank $1050 Additional information 1. Inventory at 30 September 2023: Raw material $5110, Work in progress $7365, Finished goods $13725 2. At 30 September 2023 general factory expenses of $335 were unpaid. 3. Insurance of $8000 had been paid for the year July 2023 to June 2024. 4. Rates and insurance are to be split equally between the factory and the office. 5. Factory machinery is depreciated at 25% per annum using the reducing balance method.