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

question 54

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 of goods transferred out using the FIFO method would be

• A)£45,775.
• B)£45,540.
• C)£44,500.
• D)£40,250.

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Definitions:

Merchandise

Goods or products that are bought and sold in retail or wholesale markets.

Carrying Value

The book value of assets and liabilities on a company's balance sheet, calculated as the original cost minus accumulated depreciation or amortization.

Financing Activities

Transactions related to raising capital and repaying investors, including issuing equity, obtaining loans, and dividend payments, affecting the company's capital structure.

Bonds

Fixed income investment products that represent loans made by an investor to a borrower, typically corporate or governmental.