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WAEC Financial Accounting 2025 Question 17

Question 17

Manufacturing Accounts

Use the following information to answer questions 17 and 18.
Prime cost of production: $500,000
Factory overheads: $80,000
Opening work-in-progress: $35,000
Cost of production: $520,000
The closing work-in-progress is

  1. A.$115,000
  2. B.$95,000
  3. C.$55,000
  4. D.$45,000
Show the answer and explanation

Answer: B ($95,000)

Explanation

500,000 + 80,000 + 35,000 = 615,000; 615,000 − 520,000 cost of production = $95,000 closing work-in-progress.