Figure 5-9
the Following Information Is Available for Department Z

question 38

Multiple Choice

Figure 5-9
The following information is available for Department Z for the month of July: $\begin{array}{lcc}&\text { Units }&\text {Cost }\\\text { Work in progress, July } 1 \text { (70\% complete) } & 5,000 \\ \text { Direct materials } &&£ 6,000 \\ \text { Direct labour } &&3,000 \\ \text { Manufacturing overhead } &&4,000 \\ \text { Total work in progress, July } 1 &&£ 13,000 \\\\ \text { Started in production during July}&20,000\\\\ \text { Costs added:}\\ \text { Direct materials}&&£ 18,000\\ \text { Direct labour}&&8,000\\ \text { Manufacturing overhead}&&10,000\\ \text { Total costs added during July}&&£ 36,000\\\\ \text { Work in progress, July 31 , ( \( 80 \% \) complete) }&2,000\\\end{array}$ Materials are added at the beginning of the process. (Round unit costs to two decimal places.)
-Refer to Figure 5-9. Department Z's cost per equivalent unit of production for conversion costs using the FIFO method would be

• A)£1.18.
• B)£1.02.
• C)£0.85.
• D)£0.73.

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Definitions:

European Union

A political and economic union of 27 member countries located primarily in Europe, aiming to promote peace, stability, and economic cooperation among its members.

IFRS

International Financial Reporting Standards, a set of global accounting standards for preparing financial statements.

Financial Statements

Reports that summarize the financial performance, position, and cash flows of a company over a specific period, including the income statement, balance sheet, and statement of cash flows.

Audit Vulnerabilities

Areas within an organization's financial or operational processes that are most susceptible to misstatement, error, or fraud, potentially affecting the accuracy of financial statements.