OxfordAQA IGCSE Accounting: Manufacturing accounts (9215) – Practice Questions

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

These questions follow the OxfordAQA International GCSE Accounting (9215) specification, version 1.2, for exams from May/June 2026, and cover the manufacturing organisations content of section 3.4. Revise first with the study guide or the revision notes. The OxfordAQA IGCSE Accounting hub, the checklist and the free diagnostics help you plan the rest. All amounts are in dollars.

Questions

1. Orlington Crates makes wooden crates. For each item, state whether it is direct materials, direct wages, a factory overhead or an income statement expense: (a) timber used in the crates; (b) wages of the saw operators; (c) salary of the factory supervisor; (d) carriage outwards on crates sold; (e) depreciation of the cutting machinery. [5]

2. Orlington Crates had these figures: opening inventory of raw materials 3,800; purchases of raw materials 41,200; carriage inwards 900; returns outwards 1,100; closing inventory of raw materials 4,500; direct wages 26,400. Calculate the cost of raw materials used and the prime cost. [4]

3. Harnsey Pottery pays factory rent of 9,600, which includes 800 paid in advance. Power paid is 5,100 and 450 is owing. Indirect wages are 11,200. The kiln cost 36,000, has a residual value of 6,000 and a life of 6 years, depreciated on the straight line method. Insurance paid is 2,400, of which three-quarters relates to the factory. Calculate the total factory overheads. [6]

4. Stanrigg Textiles has a prime cost of 88,400 and overheads of 21,900. Opening finished goods are 6,000 and closing finished goods are 7,500. Net sales are 152,000. (a) Calculate the factory cost of finished goods. [1] (b) Calculate the cost of sales. [2] (c) Calculate the gross profit. [2]

5. Ottersley Cycles owns factory machinery that cost 60,000. Accumulated depreciation at the start of the year is 21,600. The business uses the reducing balance method at 25% a year. (a) Calculate the depreciation charge for the year. [2] (b) Calculate the carrying amount at the end of the year. [1] (c) State in which statement the charge is shown. [1]

6. Veldmoor Lamps has opening finished goods of 8,300, a factory cost of finished goods of 94,000 and closing finished goods of 9,100. The owner took finished goods that cost 700 for own use. Drawings before this adjustment are 18,000. (a) Calculate the cost of sales. [3] (b) Calculate the drawings to be shown in the statement of financial position workings. [1] (c) Explain why the goods are deducted in the cost of sales calculation. [1]

7. Melbrook Tools has these year-end figures: inventories of raw materials 5,200; inventories of finished goods 12,800; trade receivables 21,000 with a provision for doubtful debts to be 5% of trade receivables; factory insurance prepaid 500; power owing 650. Show the current assets and the other payables as they appear in the statement of financial position, excluding bank. [5]

8. Ludgrave Bakeries had these results.

	Year 1	Year 2
Prime cost	80,000	90,000
Overheads	20,000	27,000
Net sales	160,000	170,000
Cost of sales	112,000	127,500

(a) Calculate overheads as a percentage of prime cost for each year. [2] (b) Calculate the gross profit margin for each year. [2] (c) Comment on the change in profitability between the years. [2]

9. Dornleigh Chairs makes chairs. Prepare the manufacturing account for the year ended 30 June 2026 from these figures. Inventories of raw materials: opening 4,200, closing 5,100. Purchases of raw materials 52,600. Returns outwards 1,400. Carriage inwards 1,200. Direct wages 37,900. Indirect wages 9,300. Power paid 6,200, with 500 owing. Factory rent paid 14,400, with 1,200 prepaid. Machinery cost 80,000 with accumulated depreciation of 24,000 at the start of the year, depreciated at 20% on the reducing balance. [10]

10. Continue with Dornleigh Chairs, using your factory cost of finished goods from Question 9. Revenue is 198,000 and sales returns are 3,000. Finished goods: opening 11,000, closing 13,500. The owner took finished goods that cost 1,000 for own use. Selling expenses 15,200. Office salaries paid 28,000, with 2,000 owing. Office equipment depreciation 2,500. Irrecoverable debts 900. Trade receivables 24,000, with an existing provision for doubtful debts of 700 to become 4% of trade receivables. Prepare the income statement for the year ended 30 June 2026. [10]

11. A manufacturer prepares a manufacturing account as well as an income statement. (a) State two reasons for preparing a manufacturing account. [2] (b) Explain why closing raw materials appears in the manufacturing account but closing finished goods appears in the income statement. [2] (c) Explain why office equipment depreciation is not an overhead in the manufacturing account. [2]

Answers

1. (a) Direct materials [1]. (b) Direct wages [1]. (c) Factory overhead (indirect wages) [1]. (d) Income statement expense (selling cost) [1]. (e) Factory overhead [1]. [5] Examiner insight: Classification answers gain credit when you name the category and tie it to the factory. Writing only “expense” for the supervisor’s salary leaves the answer too general.

2. Raw materials used = 3,800 + 41,200 + 900 - 1,100 - 4,500 [1] [1] = 40,300 [1]. Prime cost = 40,300 + 26,400 = 66,700 [1]. [4] Examiner insight: Show the line-by-line working. If the sign on returns outwards is wrong, a clear layout lets the marker see the rest of your method.

3. Rent 9,600 - 800 = 8,800 [1]. Power 5,100 + 450 = 5,550 [1]. Indirect wages 11,200 [1]. Depreciation (36,000 - 6,000) / 6 = 5,000 [1] [1]. Insurance three-quarters of 2,400 = 1,800 [1]. Total = 8,800 + 5,550 + 11,200 + 5,000 + 1,800 = 32,350. [6] Examiner insight: The final total is only as good as each line. Listing every overhead with its adjustment makes it easy to see where one slipped.

4. (a) 88,400 + 21,900 = 110,300 [1]. (b) 6,000 + 110,300 - 7,500 [1] = 108,800 [1]. (c) 152,000 - 108,800 [1] = 43,200 [1]. [5] Examiner insight: A manufacturer’s cost of sales uses the factory cost of finished goods. Substituting purchases is a common loss of marks on this line.

5. (a) Carrying amount at start = 60,000 - 21,600 = 38,400 [1]. Charge = 25% of 38,400 = 9,600 [1]. (b) 38,400 - 9,600 = 28,800 [1]. (c) The manufacturing account, as a factory overhead [1]. [4] Examiner insight: Reducing balance is applied to the carrying amount, not to cost. Writing the 38,400 line first shows the correct base.

6. (a) 8,300 + 94,000 - 9,100 [1] - 700 [1] = 92,500 [1]. (b) 18,000 + 700 = 18,700 [1]. (c) The goods were not sold to customers, so their cost is removed from cost of sales and charged to the owner as drawings [1]. [5] Examiner insight: A reason needs the idea that the goods were not sold. Stating only “to adjust the figures” repeats the question without explaining it.

7. Raw materials 5,200 [1]. Finished goods 12,800 [1]. Trade receivables less provision = 21,000 - 1,050 = 19,950 [1]. Other receivables (prepaid insurance) 500 [1]. Other payables 650 [1]. (Total current assets excluding bank = 38,450.) [5] Examiner insight: Present inventories as two separate lines. Placing the prepayment among current assets and the amount owing among current liabilities is part of showing you know the headings.

8. (a) Year 1: 20,000 / 80,000 x 100 = 25% [1]. Year 2: 27,000 / 90,000 x 100 = 30% [1]. (b) Year 1: (160,000 - 112,000) / 160,000 = 30% [1]. Year 2: (170,000 - 127,500) / 170,000 = 25% [1]. (c) Profitability has fallen because the gross profit margin dropped from 30% to 25% [1], and overheads have risen as a share of prime cost, which suggests factory running costs have grown faster than direct costs [1]. [6] Examiner insight: A comment gains credit when it quotes a calculated figure and gives a reason. A repeat of the numbers alone does not explain anything.

9. Materials: 4,200 + 52,600 + 1,200 = 58,000 [1]; less returns outwards 1,400 and closing 5,100 [1]; materials used 51,500 [1]. Direct wages 37,900; prime cost 89,400 [1]. Overheads: indirect wages 9,300 [1]; power 6,200 + 500 = 6,700 [1]; rent 14,400 - 1,200 = 13,200 [1]; depreciation 20% of (80,000 - 24,000) = 11,200 [1] [1]. Overheads total 40,400 and factory cost of finished goods = 89,400 + 40,400 = 129,800 [1]. [10] Examiner insight: Set the account out in order: materials used, prime cost, overheads, factory cost. A clear layout lets each adjustment be seen and credited separately.

10. Net sales = 198,000 - 3,000 = 195,000 [1]. Cost of sales = 11,000 + 129,800 - 13,500 - 1,000 [1] [1] = 126,300 [1]. Gross profit = 68,700 [1]. Expenses: selling 15,200; office salaries 28,000 + 2,000 = 30,000 [1]; depreciation 2,500; irrecoverable debts 900 [1]; provision 4% of 24,000 = 960 less 700 = 260 [1]; total expenses 48,860 [1]. Profit for the year = 68,700 - 48,860 = 19,840 [1]. [10] Examiner insight: Only the change in the provision goes to the income statement. Charging the full 960 is a typical error, and a correct 260 on its own line is easy to credit.

11. (a) Any two: to find the cost of the goods made in the year [1]; to separate prime cost and overheads for cost control and comment [1]; to give the factory cost that replaces purchases in the income statement. [2] (b) Raw materials have not yet been used in making goods, so the closing figure adjusts the materials used in the manufacturing account [1]. Finished goods are the output waiting to be sold, so the closing figure adjusts the cost of sales in the income statement [1]. [2] (c) The manufacturing account holds only costs of making goods [1], and office equipment supports administration, so its depreciation is an income statement expense [1]. [2] Examiner insight: Explanations score when each reason is distinct. Two versions of “to find the cost” count as one point.

Where marks are usually lost

• Leaving closing raw materials out of the materials used calculation.
• Adding returns outwards instead of deducting them.
• Treating a supervisor’s salary as direct wages.
• Using cost, not carrying amount, for reducing balance depreciation.
• Missing a prepayment or an amount owing in an overhead.
• Putting the closing finished goods in the manufacturing account.
• Charging the whole provision, not the change, to the income statement.
• Making a comment with no figure and no reason.

Next steps

• Re-read the revision notes for the layouts.
• Go back to the study guide for the full worked example.
• Open the OxfordAQA IGCSE Accounting hub and the checklist.
• Try the all free 10-minute diagnostics.
• Book a free trial class.

Frequently asked questions

Where do students usually lose marks on manufacturing accounts in OxfordAQA 9215? Common losses are leaving closing raw materials out of the materials used calculation, adding returns outwards instead of deducting them, and treating a supervisor’s salary as direct wages.

Where does closing inventory of finished goods go? Closing finished goods inventory is deducted in the cost of sales calculation in the income statement, not in the manufacturing account. Putting it in the manufacturing account is a common mistake.

What should I check when working out a factory overhead? Adjust for any prepayment or amount owing, and use the carrying amount rather than cost for reducing balance depreciation of factory machinery.

How should I comment on manufacturing results? Use a figure from the statements, such as overheads as a percentage of prime cost, and give a reason for the change. A comment with no figure and no reason earns little.

Official syllabus

OxfordAQA International GCSE Accounting (9215), version 1.2, for exams from May/June 2026, published by OxfordAQA. These questions cover the manufacturing organisations content of section 3.4.