During the year to 31 December 2014, Lars Anderson incurs the following costs in his
factory, which produces cakes for sale to hotels and restaurants:
| £ | |
| Ingredients | 102,952 |
| Wages to factory workers | 74,120 |
| Wages owed to factory workers | 6,300 |
| Factory rent and rates | 12,500 |
| Factory light and heat | 8,543 |
| Wages to supervisors | 26,100 |
| Depreciation of factory machinery | 3,910 |
| Inventory of raw materials on 1 January 2014 | 12,400 |
| Inventory of raw materials on 31 December 2014 | 11,500 |
| Partly completed inventory (work in progress) on 1 January 2014 |
1,540 |
| Partly completed inventory (work in progress) on 31 December 2014 |
640 |
Calculate the cost of manufacturing (for inclusion as part of the ‘cost of sales’ in the
income statement) for the year ended 31 December 2014.