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WAEC Financial Accounting 2025 Question 18

Question 18

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 work-in-progress for the year shows

  1. A.an increase of $35,000
  2. B.a decrease of $35,000
  3. C.an increase of $60,000
  4. D.a decrease of $60,000
Show the answer and explanation

Answer: C (an increase of $60,000)

Explanation

Work-in-progress rose from $35,000 to $95,000, an increase of $60,000.