IGCSE Accounting Paper-1: Specimen Questions with Answers 338 - 338 of 338
Passage
Gulzar opened a toy car factory on 1 May 2,019. He provided the following information at the end of his first accounting year.
| $ | ||
Purchases of raw materials | 14,000 | |
Direct factory wages | 9,800 | |
Indirect factory wages | 7,500 | |
Factory insurance | 300 | |
General factory expenses | 200 | |
Carriage inwards | 650 | |
Factory Electricity | 900 | |
Stock at 30 April 2,020: | ||
Raw materials | 1,000 | |
Work in progress | 1,550 | |
Finished goods | 2,850 |
Factory machinery, $ 20,000, was purchased on 1 May 2,019 and is to be depreciated by 10% per annum.
Question 338 (8 of 8 Based on Passage)
Write in Brief
One Liner▾Define and give one example of each of the following types of inventory. (Marks 2)
Finished goods
Explanation
Finished Goods are those which have completed the manufacturing process and are ready to be sold to the consumer.
In plastic toy car manufacturing, finished toy cars are finished goods.