For the year ended 31st December 2020, Jacksons' business sales turnover was £40,000 producing a gross profit of £8,450 (gross profit margin = 22

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For the year ended 31^st December 2020, Jacksons' business sales turnover was £40,000 producing a gross profit of £8,450 (gross profit margin = 22.35%)

Other relevant information:

Opening inventory£ Closing inventory£

 

Direct materials 450 500

Work-in-progress 850 1,000

Finished goods 1,750 1,800

 

• The total cost of raw materials consumed was £4,150.
• The cost of direct labour was £12,600 and total production prime cost was £19,200 (after deducting direct expenses).
• Indirect production overheads were £7,100 and machinery depreciation was £3,250.

 

1. 1.    Preparing an manufacturing account of Jacksons Ltd for the year ended 31^st December 2020. Please show working out.
2. Compose a trading account of Jacksons Ltd for the year ended 31^st December 2020 to reconcile your results and the gross profit and margin values provided above. Please show working out.