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WAEC Accounting 2018 Objective — Question 30

Question 30 of 50 from the West African Examinations Council (WAEC) Accounting 2018 Objective paper, with the correct answer and a full explanation.

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Total cost of production is [Direct materials 64,000; Direct labour 30,000; Production overheads 22,000; WIP beginning 9,000; WIP end 14,000]

  • A. GH¢94,000
  • B. GH¢106,000
  • C. GH¢111,000Correct
  • D. GH¢116,000

Explanation

Cost of production = Direct cost + factory overhead + adjustment for WIP = (64,000+30,000+22,000) + (9,000−14,000) = 116,000−5,000 = GH¢111,000.

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