IGCSE Accounting Paper-2: Specimen Questions with Answers 163 - 165 of 189

Passage

Ankita is a manufacturer. Her financial year ends on 31st March. She sells her output at 30 % mark up.

She provided the following information for the year ended 31st March 2019.

 \$ Prime Cost 25000 Factory Overheads 4200 Cost of production 20800

Question number: 163 (1 of 5 Based on Passage) Show Passage

Edit

Write in Short

Calculate the estimated gross profit for the year if the new machine is purchased. (Marks 4)

Explanation

 \$ Prime Cost 32500 Factory Overheads 5200 Cost of Production 37700

Question number: 164 (2 of 5 Based on Passage) Show Passage

Edit

One Liner Question▾

Write in Brief

Calculate the gross profit for the year ended 31st March 2019. (Marks 1)

Explanation

Ankita is planning to purchase a new machine costing \$10,000. Also, she can invest additional capital of \$4000.

Question number: 165 (3 of 5 Based on Passage) Show Passage

Edit

One Liner Question▾

Write in Brief

State any two items which included under ‘Factory Overheads’. (Marks 2)

Explanation

(i) Factory Electricity

(ii) Depreciation on Factory Fixed Assets

• Factory Overheads are those indirect expenses which are related to the factory in which the product is manufactured. For an item to be categorized under factory overheads, should have two main things-

• Firstly, it should be indirect expense, i. e. cannot be directly attributed to the product.

• Secondly, it should be incurred until the production or manufacturing process.