CAF-5 · Chapter 18 · Question 9 of 20
(Job Costing & Interlocking Ledgers) Opening WIP was Rs. 40,000. During the period, materials of Rs. 150,000 and labour of Rs. 90,000 were charged. Overheads are applied at 120% of direct labour. Completed jobs transferred to finished goods were Rs. 320,000. What is the closing balance of the WIP Control Account?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 68,000
Explanation
Total Debits = 40k (Op) + 150k (Mat) + 90k (Lab) + 108k (OH: 120% of 90k) = 388,000. Closing WIP = 388k - 320k (Transferred) = Rs. 68,000.
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