Beginning Inventory Consisted of 1,000 Units with Costs of £21,000

question 5

Multiple Choice

Beginning inventory consisted of 1,000 units with costs of £21,000. All materials and 60 per cent of labour and overhead were added in the prior period. In addition, another 8,000 units were started and completed. Unit costs are materials, £6.00; labour, £15.00; overhead, £9.00. What is the total cost of goods transferred out using FIFO?

• A)£240,000
• B)£270,000
• C)£262,200
• D)£270,600

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Definitions:

Legislation

Laws or statutes enacted by a legislative body to regulate, authorize, sanction, grant, declare, or restrict various activities.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months.

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A reason or motivation based on political goals or outcomes, influencing the actions of politicians or governments.