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WAEC Financial Accounting 2018 Question 30

Question 30

Manufacturing Accounts

Use the following information to answer questions 30 and 31.
Direct materials used: GH¢64,000
Direct labour: GH¢30,000
Production overheads: GH¢22,000
Work in progress at beginning: GH¢9,000
Work in progress at close: GH¢14,000
Total cost of production is

  1. A.GH¢94,000.
  2. B.GH¢106,000.
  3. C.GH¢111,000.
  4. D.GH¢116,000.
Show the answer and explanation

Answer: C (GH¢111,000.)

Explanation

64,000 + 30,000 + 22,000 + 9,000 − 14,000 = GH¢111,000.