The following information is provided for amusa company limited , a manufacturer

Prime cost N999,000

Manufacturing overhead N132,000

Closing work in progress N75,000

values of finished goods transferred to the

trading account N1,116,000

If including in the manufacturing overhead were rents of N5,000 paid in advance, what is the opening work in progress for the period?

okezieagu

9 years ago

Steps: # #

Prime cost 999,000

Manu. overhead 132,000

Less Prepaid rent 5,000

Total factory cost. 127,000

Equal Total cost consumed. 1,126,000

Add Opening WIP. 65,000

Equal. 1,191,000

Less Closing WIP 75,000

Cost of production. 1,116,000





Note:

Cost of production. #1,116,000

ADD Closing WIP. 75,000

Equal. 1,191,000

Less Total cost consumed. 1,126,000

Opening WIP. 65,000