IGCSE Accounting Paper-1: Specimen Questions with Answers 338 - 338 of 338
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Passage
Gulzar opened a toy car factory on 1 May 2019. He provided the following information at the end of his first accounting year.
| $ | ||
| Purchases of raw materials | 14000 | |
| Direct factory wages | 9800 | |
| Indirect factory wages | 7500 | |
| Factory insurance | 300 | |
| General factory expenses | 200 | |
| Carriage inwards | 650 | |
| Factory Electricity | 900 | |
| Stock at 30 April 2020: | ||
| Raw materials | 1000 | |
| Work in progress | 1550 | |
| Finished goods | 2850 |
Factory machinery, $ 20000, was purchased on 1 May 2019 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)
(I) Raw materials
Explanation
Raw Materials are inputs which are used to manufacture other things by further processing them. These form part of finished goods
In the manufacturing plastic toy car, plastic granules is a raw material.