Accounts (Principles of Accounts)Manufacturing accountsJAMB
Extract from the books of Zenith Furniture Ltd: Direct materials used ₦120,000 · Direct labour ₦80,000 · Direct expenses ₦10,000 · Factory overheads ₦40,000 · Work in progress at start ₦15,000 · Work in progress at end ₦25,000
What is the cost of production?
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Answer: C. ₦240,000
210,000 + 40,000 overheads + 15,000 opening WIP − 25,000 closing WIP = ₦240,000.
An AdmitMe practice question, written for the JAMB syllabus. Not an official past question.