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JAMB Principles of Accounts 2013 Question 29

Question 29

Manufacturing Accounts

In a manufacturing account, the work-in-progress at the end of the year is

  1. A.deducted from the cost of goods completed during the year.
  2. B.added to the cost of goods completed.
  3. C.stated in the profit and loss account.
  4. D.stated in the prime cost section.
Show the answer and explanation

Answer: A (deducted from the cost of goods completed during the year.)

Explanation

Closing work-in-progress is not finished, so it is deducted to find the cost of goods completed.