Manufacturing accounts

A manufacturing business gave the information below for the year ending 30 November 2019. - Factory supervisor’s salary: $\$25\,000$ - Factory power: $\$5\,000$ - Machinery depreciation: $\$11\,000$ - Machinery operators’ wages: $\$29\,000$ - Raw materials consumed: $\$82\,000$ What is the total of the direct costs?

Feb/March 2020

Which items would appear in the statement of financial position of a manufacturing business that would not be shown for a wholesale business?

Feb/March 2020

A manufacturing business gave the following details for the year ending 30 November 2022. salary of the factory supervisor $25\,000$ factory heat and light $5000$ machinery depreciation $11\,000$ wages of machinery operators $29\,000$ raw materials used up $82\,000$ What was the total amount of the direct costs?

Feb/March 2023

Which costs in a manufacturing business count as indirect costs?

Feb/March 2024

At the close of his financial year, a manufacturer gave the information below. What was the cost of production for the year?

Feb/March 2024

Which statement regarding work in progress is correct?

Feb/March 2025

A manufacturer worked out the production cost for the year as $57\,000. It was discovered that $2000 spent on lighting and heating had been left out of the financial statements. $75\%$ of lighting and heating is assigned to the factory, and $25\%$ of lighting and heating is assigned to the offices. What was the correct cost of production?

Feb/March 2025

In what way does a manufacturer calculate prime cost?

May/June 2021

How is prime cost worked out by a manufacturer?

May/June 2021

TC Limited operates in manufacturing. Its financial year ends on 31 January. As at 31 January 2021, the balances in the ledger accounts were as follows. Inventory at 1 February 2020: Raw materials $7500 Work in progress $11220 Finished goods $925 Purchases: Raw materials $91400, Finished goods $6850 Wages: Factory operatives $52000, Factory supervisor $23100 Rent and rates $19620 Insurance $4600 General factory expenses $4200 Carriage inwards on raw materials $6280 Factory equipment at cost $90000 Provision for depreciation of factory equipment $30960 Additional information 1 Inventory at 31 January 2021: Raw materials $8000, Work in progress $11900, Finished goods $1075 2 Factory equipment is to be depreciated at 20% per annum using the reducing balance method. 3 In December 2020, $3600 was paid for rent for the period 1 December 2020 to 28 February 2021. 4 At 31 January 2021 rates of $550 were unpaid. 5 Rent and rates are to be shared equally between the factory and the office. 6 Insurance is to be split 75% to the factory and 25% to the office.

May/June 2021

Which set includes only items that make up a manufacturer’s prime cost?

May/June 2022

On 1 January, ZT Manufacturers' work in progress had a value of $6200$. By the end of the year, it had been valued at $5400$. How did this affect the cost of production for the year?

May/June 2022

On 1 January, ZT Manufacturers’ work in progress was worth $6200. By the end of the year, this had fallen to $5400. What impact did this have on the cost of production for the year?

May/June 2022

A manufacturing company supplied these figures: cost of production $345 000; finished goods 1 January 2021 $42 000; finished goods 31 December 2021 $36 000; purchases of finished goods $15 000. What was the cost of sales?

May/June 2022

ZT Manufacturers’ work in progress was worth $6200 on 1 January. By the end of the year, it had fallen to $5400. How did this change affect the cost of production for the year?

May/June 2022

A manufacturing company supplied the following details: cost of production $345\,000; finished goods at 1 January 2021 $42\,000; finished goods at 31 December 2021 $36\,000; purchases of finished goods $15\,000. What was the cost of sales?

May/June 2022

Tim began a manufacturing business on 1 January. He supplied the following details for his first year of trading. Closing inventory of finished goods: $2060$ Work in progress at the end: $1840$ Factory overheads total: $15530$ Prime cost total: $70570$ What did Tim’s cost of production come to?

May/June 2023

Which group includes only service businesses?

May/June 2023

The following information was supplied by a business. Opening inventory of raw material: $50000 Closing inventory of raw material: $60000 Purchases of raw material: $80000 Carriage inwards on raw material: $2000 What was the cost of raw material consumed?

May/June 2023

A business has provided the details below. What was the expenditure on raw material consumed?

May/June 2023

Salman runs a footwear factory, and he supplies all three nearby shoe shops. He makes up his financial statements to 30 April each year. As at 30 April 2023, the balances on Salman’s ledger accounts were: Opening inventory on 1 May 2022: Raw materials $8190 Work in progress $15200 Finished goods $23860 Purchases of raw materials $78420 Purchases of finished goods $90144 Wages: Factory supervisor $27500 Factory operatives $52396 Rates and insurance $17528 Factory electricity $11442 General factory expenses $8244 Factory equipment - at cost $90000 Factory equipment - provision for depreciation $43920 Bank balance $31000 debit Further details: 1 Inventory at 30 April 2023: Raw material $8000 Work in progress $16100 Finished goods $24590 2 Salman applies a mark-up of 50% to his cost of sales. 3 Rates and insurance are to be divided three quarters to the factory and one quarter to the office. 4 On 30 April 2023, factory electricity of $1048 had not yet been paid. 5 Factory equipment is depreciated at 20% per annum using the reducing balance method.

May/June 2023

Which type of business is not a service business?

May/June 2024

What does the term direct cost mean for a manufacturer?

May/June 2024

A manufacturing business supplied the information below. - Cost of raw materials: $186\,000 - Direct wages: $75\,000 - Machinery depreciation: $45\,000 - Factory supervisor’s salary: $32\,000 - Factory rent: $24\,000 - Machinery repairs: $18\,000 What is the prime cost of manufacturing?

May/June 2024

Sam’s work in progress was $6\,500 at the beginning of the year and $11\,200 at the end of the year. While preparing his manufacturing account, Sam failed to include the adjustment for work in progress. What effect would this omission have on the cost of production and the gross profit?

May/June 2024

A manufacturing company supplied the information below. Raw material cost $186\,000$. Direct wages totalled $75\,000$. Depreciation of machinery was $45\,000$. The factory supervisor’s salary amounted to $32\,000$. Factory rent came to $24\,000$. Repairs to machinery cost $18\,000$. Calculate the prime cost of manufacturing.

May/June 2024

At the beginning of the year, Sam’s work in progress was $6\,500$ and at the end of the year it was $11\,200$. When Sam drew up his manufacturing account, he did not include the adjustment for work in progress. What effect would this omission have on the cost of production and the gross profit?

May/June 2024

Toyah runs a factory that manufactures dolls’ houses. Her financial year ends on 31 January. On 31 January 2024, the balances in her ledger accounts were as follows: Inventory at 1 February 2023: raw materials $12 400, work in progress $16 970, finished goods $14 825 Revenue $390 100 Purchases of raw materials $143 000 Wages: factory operatives $51 000, factory supervisor $19 000, sales staff $30 000 Factory electricity $16 000 Rates and insurance $16 200 General factory expenses $6 155 Factory machinery at cost $120 000 Factory machinery - provision for depreciation $52 500 Further information: Inventory at 31 January 2024: raw materials $11 205, work in progress $17 682, finished goods $13 480 Rates and insurance are to be shared $rac{2}{3}$ to the factory and $rac{1}{3}$ to the office. At 31 January 2024, unpaid general factory expenses amounted to $235. Factory machinery is depreciated at 25% per annum using the reducing balance method. During the year ended 31 January 2024, the factory made 6936 dolls’ houses. Idir, who competes with Toyah, has decided to stop trading. He has offered to sell his finished goods inventory to Toyah at a reduced price if she pays in cash immediately. The total price of those items is $9600. Toyah has $1415 cash at bank.

May/June 2024

Toyah owns a factory that manufactures dolls’ houses. Her financial year ends on 31 January. At 31 January 2024, the balances in her ledger accounts included the following figures.

May/June 2024

Which item would appear in a manufacturing account?

May/June 2025

A manufacturing business worked out the following figures for the year ending 30 April 2025. Items and amounts: - prime cost: $\$360\,000$ - factory overheads: $\$114\,850$ - work in progress at 30 April 2025: $\$7\,940$ - purchase of finished products: $\$1\,100$ Work in progress on 30 April 2024 was $\$8\,990$. Calculate the production cost of goods completed for the year ending 30 April 2025.

May/June 2025

Which items are taken into account when calculating prime cost in a manufacturing account?

May/June 2025

At the beginning of the year, a manufacturer’s work in progress was worth $\$850$. By the end of the year, it had risen to $\$10\,200$. How did this rise affect the cost of production and the cost of sales?

May/June 2025

Which item is shown in a manufacturing account?

May/June 2025

Grace runs a shoe factory. She also purchases handbags from a supplier and sells both the shoes and the handbags. Grace draws up her financial statements to 31 March each year. On 31 March 2025, the balances in her ledger accounts included these items: Inventory at 1 April 2024: Raw materials $5 345 Work in progress $13 820 Finished goods (shoes) $27 540 Purchases of raw materials $72 870 Carriage inwards of raw materials $1 220 Wages: Factory operatives $29 175 Factory supervisor $24 000 Office staff $26 170 Rent and insurance $12 000 Factory power $14 120 Factory equipment - at cost $180 000 Factory equipment - provision for depreciation $64 800 Further information: 1. Inventory at 31 March 2025: Raw materials $7 100 Work in progress $14 390 Finished goods (shoes) $27 985 2. Rent and insurance is to be split 65% to the factory and 35% to the office. 3. At 31 March 2025, Grace owed $1 315 for factory power and $2 000 for the factory supervisor’s wages. 4. Factory equipment is depreciated at 20% per annum using the reducing balance method.

May/June 2025

Grace owns a shoe factory. She also buys handbags from a supplier and sells both the shoes and the handbags. Grace draws up her financial statements to 31 March each year. At 31 March 2025, the balances in her ledger accounts included the following: Inventory at 1 April 2024: Raw materials $5 345 Work in progress $13 820 Finished goods (shoes) $27 540 Purchases of raw materials $72 870 Carriage inwards of raw materials $1 220 Wages: Factory operatives $29 175 Factory supervisor $24 000 Office staff $26 170 Rent and insurance $12 000 Factory power $14 120 Factory equipment at cost $180 000 Factory equipment - provision for depreciation $64 800 Additional information: 1. Inventory at 31 March 2025: Raw materials $7 100 Work in progress $14 390 Finished goods (shoes) $27 985 2. Rent and insurance is to be split 65% to the factory and 35% to the office. 3. At 31 March 2025, Grace owed $1315 for factory power and $2000 for the factory supervisor’s wages. 4. Factory equipment is depreciated at 20% per annum using the reducing balance method.

May/June 2025

A manufacturing firm gave the information shown below. Cost of raw materials: \$1860 Direct wages: \$750 Machinery depreciation: \$450 Factory supervisor’s salary: \$320 Factory rent: \$240 Machinery repairs: \$180 What is the prime cost of manufacturing?

Oct/Nov 2020

At the beginning of the year, a manufacturer’s work in progress was valued at \$850. By the end of the year, this had risen to \$1000. What effect did this increase have on the cost of production and the cost of sales?

Oct/Nov 2020

Which business is not a service business?

Oct/Nov 2020

A manufacturing company supplied the information below: cost of raw materials $\$186\,000$; direct wages $\$75\,000$; machinery depreciation $\$45\,000$; factory supervisor’s salary $\$32\,000$; factory rent $\$24\,000$; machinery repairs $\$18\,000$. What was the prime cost of production?

Oct/Nov 2020

At the start of the year, a manufacturer’s work in progress had a value of $\$850$. By the end of the year, this had risen to $\$10\,200$. What effect did this rise have on the cost of production and the cost of sales?

Oct/Nov 2020

Which item is not included in the prime cost of a manufacturing business?

Oct/Nov 2021

Thato’s work in progress had a higher value at the end of the year than at the start. This was shown in his financial statements. What effect did this have on the cost of production and the cost of sales?

Oct/Nov 2021

Which item is not included in the prime cost of a manufacturing business?

Oct/Nov 2021

Thato’s work in progress had a higher value by the end of the year, and this was shown in his financial statements. What effect did this have on the cost of production and the cost of sales?

Oct/Nov 2021

On 31 July 2021, KA Limited, a manufacturer of garden tools, supplied the following information. Inventory 1 August 2020 Raw materials $5820 Work in progress $1750 Finished goods $12 360 Purchases Raw materials $34 200 Finished goods $3900 Carriage on purchases Raw materials $410 Finished goods $80 Direct wages $67 200 Indirect factory wages $24 000 Factory machinery at cost $47 000 Provision for depreciation of factory machinery $11 000 Factory general overheads $16 400 Rates $5300 Inventory 31 July 2021 Raw materials $6030 Work in progress $2780 Finished goods $10 340 Revenue $223 000 Additional information 1 On 31 July 2021 rates, $500, were prepaid. Rates are to be apportioned 75% factory, 25% office. 2 On 31 July 2021 factory general overheads, $230, were accrued. 3 Factory machinery is to be depreciated at 20% per annum using the reducing balance method.

Oct/Nov 2021

A food processing factory puts vegetables into cans. The cans are then sold to shops. Which wages count as direct labour costs for the factory?

Oct/Nov 2022

Thembi produces wooden toys. She gave the following data for the financial year ending 31 August 2022. prime cost: $35\,000$ factory overheads: $17\,000$ work in progress: opening inventory: $1\,400$ closing inventory: $2\,300$ What was the cost of production of finished goods?

Oct/Nov 2022

Dan produces t-shirts that are decorated with a design by using fabric paint. He supplied the information shown below. fabric for t-shirts $10000 factory heating and lighting $5000 fabric paint $4000 factory rent $8000 wages of machine operators $16000 What is the total of the direct costs?

Oct/Nov 2022

In a manufacturing account, carriage on raw materials was wrongly recorded as a factory overhead. What effect did this mistake have on prime cost and on the cost of production?

Oct/Nov 2022

A food processing factory packs vegetables into cans. The finished cans are then supplied to shops. Which wages count as direct labour costs for the factory?

Oct/Nov 2022

Thembi makes wooden toys. She gave the following details for the financial year ending 31 August 2022. Prime cost was $35000, factory overheads were $17000, opening work in progress inventory was $1400 and closing inventory was $2300. What was the cost of production of finished goods?

Oct/Nov 2022

Which option includes only indirect costs?

Oct/Nov 2023

Which cost counts as a direct factory cost?

Oct/Nov 2023

A manufacturing company gave the information below: closing work in progress: $840$ factory overheads: $20945$ opening work in progress: $910$ prime cost: $40750$ What was the factory cost of production?

Oct/Nov 2023

Which option includes only indirect costs?

Oct/Nov 2023

Hilary runs a manufacturing business and has supplied the information below. Inventory on 1 August 2022 Raw materials inventory $9100 Work in progress inventory $21357 Finished goods inventory $24235 For the year ended 31 July 2023 Revenue $457250 Raw material purchases $110000 Raw material purchase returns $2200 Finished goods purchases $23500 Finished goods purchase returns $4700 Factory operatives’ wages $91665 Factory supervisor’s wages $29000 Office supervisor’s wages $28000 Heat, light and power $11600 Rates and insurance $8250 Factory repairs and renewals $5125 Factory equipment - at cost $124000 Factory equipment - provision for depreciation $35500 Additional information 1 Inventory on 31 July 2023 Raw materials $9980 Work in progress $22446 Finished goods $25110 2 Heat, light and power is to be apportioned 4/5 to the factory and 1/5 to the office. 3 Rates and insurance is to be apportioned 3/5 to the factory and 2/5 to the office. Insurance of $4440 has been paid for the year to 31 December 2023. 4 At 31 July 2023, a factory repair of $644 was unpaid and no adjustment had been made. 5 Factory equipment is depreciated at 25% per annum using the reducing balance method.

Oct/Nov 2023

Sara runs a clothing factory. She supplies the clothing to a small number of nearby shops. She gives 30 days credit. As at 30 September 2023, the balances in Sara’s ledger accounts were as follows. Inventory at 1 October 2022: Raw materials $4875, Work in progress $8125, Finished goods $12890 Purchases of raw materials $56400 Wages: Machine operators $43300, Factory supervisor $25000, Delivery vehicle driver $14250 Rates and insurance $29600 General factory expenses $9650 Factory machinery - at cost $80000 Factory machinery - provision for depreciation $35000 Trade receivables $27000 Cash at bank $1050 Additional information 1. Inventory at 30 September 2023: Raw material $5110, Work in progress $7365, Finished goods $13725 2. At 30 September 2023 general factory expenses of $335 were unpaid. 3. Insurance of $8000 had been paid for the year July 2023 to June 2024. 4. Rates and insurance are to be split equally between the factory and the office. 5. Factory machinery is depreciated at 25% per annum using the reducing balance method.

Oct/Nov 2023

Hilary operates a manufacturing business and has supplied the information below. Opening inventory at 1 August 2022: Raw materials $9100 Work in progress $21357 Finished goods $24235 For the year ending 31 July 2023: Revenue $457250 Purchases of raw materials $110000 Purchases returns of raw materials $2200 Purchases of finished goods $23500 Purchases returns of finished goods $4700 Wages of factory operatives $91665 Wages of factory supervisor $29000 Wages of office supervisor $28000 Heat, light and power $11600 Rates and insurance $8250 Factory repairs and renewals $5125 Factory equipment - at cost $124000 Factory equipment - provision for depreciation $35500 Additional information: 1 Inventory at 31 July 2023: Raw material $9980 Work in progress $22446 Finished goods $25110 2 Heat, light and power is to be divided 4/5 to the factory and 1/5 to the office. 3 Rates and insurance is to be divided 3/5 to the factory and 2/5 to the office. Insurance of $4440 has been paid for the year to 31 December 2023. 4 At 31 July 2023, a factory repair costing $644 had not been paid, and no adjustment had been recorded. 5 Factory equipment is depreciated at 25% per annum using the reducing balance method.

Oct/Nov 2023

Thatô is a manufacturer. In the manufacturing account for the year ended 31 December, his work in progress showed an increase. What effect did this have on the cost of production and the cost of sales?

Oct/Nov 2024

A factory produces uniforms for school pupils. Which item is excluded when calculating prime cost in the factory’s manufacturing account?

Oct/Nov 2024

After a manufacturing account had been prepared, it was found that the wages paid to factory cleaners had been omitted. Which items in the manufacturing account would be altered when this error was corrected?

Oct/Nov 2024

W Limited produces motorbikes. The information below refers to its first year of trading: motorbike parts purchased $40\,000$ factory workers' wages $25\,000$ production overhead costs $8\,000$ motorbike parts inventory at the end of the year $3000$ inventory of partially completed motorbikes at the end of the year $7000$ What was the production cost of the motorbikes finished during the year?

Oct/Nov 2024

Thato runs a manufacturing business. In his manufacturing account for the year ended $31$ December, the amount of work in progress had risen. What effect did this have on the cost of production and the cost of sales?

Oct/Nov 2024

A factory produces schoolchildren’s uniforms. What is excluded from the calculation of prime cost in the factory’s manufacturing account?

Oct/Nov 2024

The year ended 31 March 2024 information below was given for G Limited, a manufacturing business. Purchases: Raw materials $68000 Finished goods $32413 Wages: Factory operatives $183700 Factory supervisors $47200 Administration salaries $34925 Factory machinery at cost $247000 Provision for depreciation of factory machinery $51500 Factory general expenses $20250 Rates & insurance $7100 Administration expenses $5470 Carriage on purchases of finished goods $2180 Royalties $3240 Inventory: 1 April 2023 / 31 March 2024 Raw materials $18200 / $19820 Work in progress $23400 / $22650 Finished goods $6820 / $9350 Additional information: 1 Factory machinery is to be depreciated at 15% per annum using the reducing balance method. 2 On 31 March 2024 rates, $620, were owing. 3 Rates and insurance are to be apportioned 60% to the factory and 40% to the office.

Oct/Nov 2024

The following details were supplied by G Limited, a manufacturing company, for the year ended 31 March 2024. Purchases: Raw materials $68000; Finished goods $32413. Wages: Factory operatives $183700; Factory supervisors $47200. Administration salaries $34925. Factory machinery at cost $247000. Provision for depreciation of factory machinery $51500. Factory general expenses $20250. Rates & insurance $7100. Administration expenses $5470. Carriage on purchases of finished goods $2180. Royalties $3240. Inventory: 1 April 2023 - Raw materials $18200; Work in progress $23400; Finished goods $6820. 31 March 2024 - Raw materials $19820; Work in progress $22650; Finished goods $9350. Additional information: 1 Factory machinery is to be depreciated at 15% per annum using the reducing balance method. 2 On 31 March 2024 rates, $620, were owing. 3 Rates and insurance are to be apportioned 60% to the factory and 40% to the office.

Oct/Nov 2024

A manufacturing business supplied the following figures. prime cost: $236\,000$, factory overheads: $42\,000$, opening work in progress: $8\,000$, closing work in progress: $6\,000$. What amount of factory cost of production was transferred to the income statement?

Oct/Nov 2025

These figures refer to a manufacturing business for the year ended 30 September 2025: [table shown with prime cost $355000, factory overheads $114850, total production cost of finished goods $475000, inventory of raw materials at 30 September 2025 $4200, inventory of finished products at 30 September 2025 $1100]. Work in progress at 30 September 2024 stood at $9990. What was the business's total inventory at 30 September 2025?

Oct/Nov 2025

A manufacturing account and income statement are being drawn up for a business that produces chairs and desks for schools. The business pays wages to these workers: 1. the carpenters who manufacture the chairs and desks 2. the cleaner who tidies the offices used by the accounts and sales staff 3. the lorry driver who transports the completed chairs and desks to schools 4. the supervisor responsible for the carpenters. Which wages will be recorded as an expense in the income statement?

Oct/Nov 2025

GH Company makes car parts and has supplied the information below for the year ended 31 March 2025.

Oct/Nov 2025