Accounting 0452 · IGCSE · Manufacturing accounts

Manufacturing accounts — practice question

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.
(a)[9]

Prepare Toyah’s manufacturing account for the year ended 31 January 2024.

(b)[5]

Prepare Toyah’s income statement (trading section) for the year that ended 31 January 2024.

(c)[1]

Calculate the manufacturing cost of each dolls’ house and round your answer up to the nearest dollar.

(d)[5]

Advise Toyah whether she should buy Idir’s inventory or not. Justify your answer by giving two points in favour of and two points against buying this inventory.

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