NSC English General Accounting Important concepts of manufacturing: 1.1 Choose an example in COLUMN

Question

1.1 Choose an example in COLUMN B that matches the cost category in COLUMN A. Write only the letter (A–E) next to the question numbers (1.1.1 to 1.1.5) in the ANSWER BOOK.

COLUMN A                         COLUMN B

1.1.1 Selling and distribution        A raw material issued for production
1.1.2 Direct labour                     B bad debts
1.1.3 Administration                  C depreciation on factory machinery
1.1.4 Factory overhead cost       D production wages
1.1.5 Direct material                   E bank charges

(5 x 1)

1.2 BERGVIEW MANUFACTURERS

Amounts extracted from the records on 29 February 2020

R

Salary: factory foreman                   150 000
Depreciation on factory equipment  145 000
Direct material cost                         23 000
Direct labour cost                             1 209 300
Indirect material purchased              30 300
Insurance                                          6 000
Water and electricity                        101 600
Rent expense                                      113 000
Sales                                                  6 000 000
Cost of sales (mark-up on cost: 60%)  7

* Insurance is shared by the factory, administration and the selling department in the ratio 3 : 2 : 1.  
* Water and electricity for February 2020 is still outstanding, R12 000.  
* Rent expense is distributed according to factor expenses 700 m² of the total area of 900 m².

1.1 Choose an example in COLUMN B that matches the cost category in COLUMN A - English General - NSC Accounting - Question 1 - 2020

Worked Solution & Example Answer:1.1 Choose an example in COLUMN B that matches the cost category in COLUMN A - English General - NSC Accounting - Question 1 - 2020

1.1.1 Selling and distribution

1.1.2 Direct labour

1.1.3 Administration

1.1.4 Factory overhead cost

1.1.5 Direct material

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