CIMA BA3 · Chapter 11 · Question 10 of 12
A manufacturer's prime cost for the year is $85,000 and factory overheads are $21,000. Work in progress was $4,200 at the start of the year and $5,800 at the end. What is the production cost of goods completed?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) $104,400
Explanation
Production cost of goods completed = prime cost + factory overheads + opening WIP - closing WIP = $85,000 + $21,000 + $4,200 - $5,800 = $104,400.
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