Syllabus Edition
First teaching 2021
Last exams 2026
Exam code: 0452 & 0985
Which costs of a manufacturing business are indirect costs?
rent of the factory
wages of employees who make the goods
wages of the factory supervisors
raw materials used in production
1 and 3 only
2 and 4
1, 2 and 3
1 only
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Where is work-in-progress shown in the statement of financial position of a manufacturing business?
non-current assets
current assets
non-current liabilities
current liabilities
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What would be included in the statement of financial position of a manufacturing business but not a wholesale business?
machinery
office equipment
trade payables
work in progress
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Which calculation gives the prime cost for a manufacturing business?
direct material + direct labour
direct material + direct labour + direct expenses
direct material + direct labour + direct expenses + factory overheads
direct material + direct labour + factory overheads
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Which calculation is used by a manufacturer to find the cost of production?
prime cost + factory overheads + opening work in progress - closing work in progress
prime cost - factory overheads + opening work in progress - closing work in progress
prime cost + factory overheads - opening work in progress + closing work in progress
prime cost - factory overheads - opening work in progress + closing work in progress
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Which calculation gives the cost of the raw materials consumed?
closing inventory of raw materials + purchases of raw materials + carriage inwards - opening inventory of raw materials
closing inventory of raw materials + purchases of raw materials - carriage inwards - opening inventory of raw materials
opening inventory of raw materials + purchases of raw materials + carriage inwards - closing inventory of raw materials
opening inventory of raw materials + purchases of raw materials - carriage inwards - closing inventory of raw materials
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A manufacturing business provided the following information for the year ended 31 May 2024.
$ | |
depreciation of machinery | 13 000 |
raw materials consumed | 62 000 |
wages of machine operators | 31 000 |
salaries of factory supervisors | 28 000 |
rent of factory | 12 000 |
What was the total of the direct costs?
$93 000
$105 000
$118 000
$146 000
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A manufacturer provided the following information at the end of his financial year.
$ | |
work in progress at the start of the year | 5 400 |
work in progress at the end of the year | 4 600 |
prime cost | 87 200 |
factory overheads | 19 500 |
What was the cost of production for the year?
$66 900
$68 500
$105 900
$107 500
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A manufacturing business provided the following information for a financial year.
$ | |
purchases of raw material | 95 000 |
carriage inwards on raw material | 3 000 |
opening inventory of raw material | 36 000 |
closing inventory of raw material | 28 000 |
What was the cost of raw materials consumed?
$87 000
$90 000
$103 000
$106 000
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A manufacturing company provided the following information.
$ | |
cost of raw materials | 162 000 |
factory rent | 31 000 |
direct wages | 83 000 |
factory supervisor's salary | 28 000 |
depreciation of machinery | 35 000 |
machinery repairs | 10 000 |
What was the prime cost of manufacturing?
$162 000
$245 000
$273 000
$349 000
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A manufacturing business started on 1 May 2023. The owner provided the following information about the first year in business.
$ | |
prime cost | 65 420 |
factory overheads | 17 270 |
work in progress at the end of the year | 2 050 |
closing inventory of finished goods | 2 870 |
What was the cost of production?
$77 770
$79 820
$80 640
$84 740
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A manufacturer’s inventory of raw materials at the start of the year was valued at $1 500. At the end of the year, it was valued at $1 250.
What was the effect of this decrease on the cost of production and the cost of sales?
cost of production | cost of sales | |
|---|---|---|
A | decrease | decrease |
B | increase | increase |
C | increase | no change |
D | no change | increase |
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A manufacturer calculated the cost of production for the year at $54 500.
It was found that insurance and rates, $3 400, had been omitted from the financial statements.
Insurance and rates is allocated 80% to the factory and 20% to the offices.
What was the correct cost of production?
$51 780
$55 180
$57 220
$57 900
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