NSC 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
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

COLUMN B
A. raw material issued for production
B. bad debts
C. depreciation on factory machinery
D. production wages
E. bank charges

1.2 BERGVIEW MANUFACTURERS
NSC 2019/ME0 2019/SC

B. Amounts extracted from the records on 29 February 2020

Salary: factory foreman
Depreciation on factory equipment
Direct material cost
Direct labour cost
Indirect material purchased
Insurance
Water and electricity
Rent expense
Sales
Cost of sales (mark-up on cost: 60%)

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 each department; the factory occupies 200 m² of the total floor space of 900 m².

1.1 Choose an example in COLUMN B that matches the cost category in COLUMN A - 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 - 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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