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WAEC Financial Accounting 2020 Question 25

Question 25

Manufacturing Accounts

The cost incurred on goods purchased for production which can be traced to a particular unit is classified as

  1. A.direct labour.
  2. B.direct expenses.
  3. C.direct materials.
  4. D.factory overhead.
Show the answer and explanation

Answer: C (direct materials.)

Explanation

Goods bought and used in making a product, traceable to each unit, are direct materials.