Accounting Multiple Choice Question – 25 October 2022

At the beginning of a given period the value of work-in-progress was £11,000.

The unit costs of production for the period were:

• direct materials – £5.00
• direct labour – £8.50

At the end of the period work-in-progress consisted of 700 units which were complete as to 80% of materials and 50% labour.

What was the change in the value of the work-in-progress during the period?

Select ONE answer:

1. Decrease – £1,550
2. Increase – £1,550
3. Decrease – £5,225
4. Increase – £5,225

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct = = > £11,000 – (£5 * 0.8 * 700) – (£8.5 * 0.5 * 700)
4. Not correct

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