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:

Traditional Work Group

A conventional team structure in an organization where members have specific roles and tasks, collaborating towards a common goal without high autonomy or flexibility.

First-line Supervisor

A managerial position responsible for directly overseeing and managing the work of entry-level or frontline employees.

Self-managing Responsibilities

Tasks or duties that an individual is accountable for completing on their own, often requiring self-discipline and time management skills.

Productivity Improvements

Involves strategies and actions taken to increase the efficiency and effectiveness of processes, leading to higher outputs with the same or reduced input levels.