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.

Gulzar Opened a Toy Car Factory on 1 May 2019
$
Purchases of raw materials14000
Direct factory wages9800
Indirect factory wages7500
Factory insurance300
General factory expenses200
Carriage inwards650
Factory Electricity900
Stock at 30 April 2020:
Raw materials1000
Work in progress1550
Finished goods2850

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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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.

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