IGCSE Accounting Paper-1: Specimen Questions with Answers 336 - 338 of 338

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 2019Gulzar opened a toy car factory on 1 May 2019

$

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 number: 336 (6 of 8 Based on Passage) Show Passage

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One Liner Question▾

Write in Brief

Calculate the gross profit ratio showing your workings (Marks 2)

Explanation

Question number: 337 (7 of 8 Based on Passage) Show Passage

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One Liner Question▾

Write in Brief

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.

Question number: 338 (8 of 8 Based on Passage) Show Passage

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One Liner Question▾

Write in Brief

Calculate the Net Profit Ratio. (Marks 2)

Explanation

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