The Primrose Garden Store has two departments: plants and tools. The following information is available for the year ended 30 September 2019.
Revenue plants $252000, tools $130000
Wages plants $38000, tools $17000
Direct expenses $5730
Additional information
1 The mark-up on plants is 40%.
2 The profit margin on tools is 20%.
3 Direct expenses are apportioned to departments on the basis of revenue.
REQUIRED

Q: What topic does this question test?

This question tests Accounting procedures in O-Level Accounting (syllabus code 7707). It is worth 20 marks.

Q: Which exam paper is this question from?

This question appeared in the Cambridge O-Level Accounting Oct/Nov 2019 examination, Paper 2 Variant 1 (7707_w19_qp_21.pdf).

Question

The Primrose Garden Store has two departments: plants and tools. The following information is available for the year ended 30 September 2019.
Revenue plants $252000, tools $130000
Wages plants $38000, tools $17000
Direct expenses $5730
Additional information
1 The mark-up on plants is 40%.
2 The profit margin on tools is 20%.
3 Direct expenses are apportioned to departments on the basis of revenue.
REQUIRED

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