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The addition of prime cost, indirect cost and opening work-in-progress less the closing work-in-progress will...

Accounts - Principles of Accounts
JAMB 2013

The addition of prime cost, indirect cost and opening work-in-progress less the closing work-in-progress will result in cost of

  • A. goods available for sale
  • B. goods sold
  • C. goods manufactured
  • D. materials put into production
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Correct Answer: Option C
Explanation

The cost of goods manufactured equation is calculated by adding the total manufacturing costs; including all direct materials, direct labor, and factory overhead; to the beginning work in process inventory and subtracting the ending goods in process inventory.


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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