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.

Gulzar Opened a Toy Car Factory on 1 May 2,019
$

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)

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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.

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