Scribd Logo
Upload

Welcome to Scribd!

  • 7 views

    Chapter 10 Online Test Answers

    Uploaded by

    nesiaroberts903

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Chapter 10 Online Test Answers

    Uploaded by

    nesiaroberts903
    7 views3 pages

    Original Title

    Chapter_10_online_test_answers

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    7 views3 pages

    Chapter 10 Online Test Answers

    Uploaded by

    nesiaroberts903

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 3

    Principles of Accounts for CSEC®

    2nd edition

    Chapter 10: Manufacturing and inventory control


    1. D (1 mark)
    2. B (1 mark)
    3. C (1 mark)
    4. B (1 mark)
    5. (a)
    Kinder Castles Ltd.
    Manufacturing account for the year ended 30 September 2018
    $ $ $
    Inventory of raw material 1 October 2017 25 000
    Purchases 90 000
    Carriage inwards 2 000
    92 000
    Return outwards (5 000)
    Net purchases 87 000
    Inventory of raw material 30 September 2018 (39 000)
    48 000
    (i) Cost of raw materials consumed 73 000
    Factory workers’ wages 30 000
    (ii) Prime cost 103 000
    Add factory overheads:
    Factory lighting (⅔ × 4 500) 3 000
    Factory supervisor’s salary 15 000
    Factory rent 4 500
    Depreciation on plant and equipment
    20% × 100 000 20 000 42 500
    145 500
    Work in progress 1 October 2017 17 000
    162 500
    Work in progress 30 September 2018 (21 000)
    (iii) Cost of production 141 500

    Mark Scheme

    •• Cost of raw materials consumed: 3 marks


    •• Prime cost: 1 mark each
    •• Cost of production: 4 marks
    (8 marks)

    1 Principles of Accounts for CSEC® 2nd edition © Oxford University Press 2019
    Chapter 10: Manufacturing and inventory control
    141 500
    (b) (i) = $18.67 per unit
    7 500

    Mark Scheme

    •• Use formula to calculate cost per unit: 1 mark


    (1 mark)

    (ii) $30 − $18.67 = $11.33

    Mark Scheme

    •• Calculate mark-up: 1 mark


    (1 mark)

    (c) (i)

    Kaizen Inc. inventory sheet


    Purchases Sales Balance
    Date Units Cost Value Units Cost Value Units Cost Value
    $ $ $ $ $ $
    01/06 600 80 48 000 600 80 48 000
    05/06 300 75 22 500 600 80 48 000
    300 75 22 500
    70 500
    08/06 400 150 60 000 200 80 16 000
    300 75 22 500
    38 500
    11/06 150 85 12 750 200 80 16 000
    300 75 22 500
    150 85 12 750
    51 250
    15/06 300 125 37 500 200 75 15 000
    150 85 12 750
    27 750
    20/06 250 74 18 500 200 75 15 000
    150 85 12 750
    250 74 18 500
    46 250
    30/06 100 175 17 500 100 75 7 500
    150 85 12 750
    250 74 18 500
    38 750

    2 Principles of Accounts for CSEC® 2nd edition © Oxford University Press 2019
    Chapter 10: Manufacturing and inventory control
    Mark Scheme

    •• For correctly arriving at the balancing figures on June 8, 11 and 15 (sales):


    2 marks each
    •• Closing stock figure on June 30: 1 mark
    (7 marks)

    (b) (ii)

    Kaizen Inc.
    Trading account for the month ending 30 June 2018
    $ $
    Sales 115 000
    Less cost of goods sold:
    Opening inventory 48 000
    Purchases 53 750
    101 750
    Less closing inventory (38 750) (63 000)
    Gross profit 52 000

    Mark Scheme

    •• Sales figure: 1 mark


    •• Purchases figure: 1 mark
    •• Gross profit figure: 1 mark
    (3 marks)

    3 Principles of Accounts for CSEC® 2nd edition © Oxford University Press 2019

    You might also like