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WAEC Financial Accounting 2018 Question 31

Question 31

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
Prime cost of production is

  1. A.GH¢64,000.
  2. B.GH¢94,000.
  3. C.GH¢111,000.
  4. D.GH¢116,000.
Show the answer and explanation

Answer: B (GH¢94,000.)

Explanation

Direct materials 64,000 + direct labour 30,000 = GH¢94,000.