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JAMB Principles of Accounts 2013 Question 26

Question 26

Manufacturing Accounts

The addition of prime cost, indirect cost and opening work-in-progress less the closing work-in-progress will result in cost of

  1. A.goods available for sale.
  2. B.goods sold.
  3. C.goods manufactured.
  4. D.materials put into production.
Show the answer and explanation

Answer: C (goods manufactured.)

Explanation

Prime cost + factory overheads, adjusted for work-in-progress, gives the cost of goods manufactured (completed).