Accounting 0452 · IGCSE · Manufacturing accounts

Manufacturing accounts — practice question

At the start of the year, a manufacturer’s work in progress had a value of $\$850$. By the end of the year, this had risen to $\$10\,200$. What effect did this rise have on the cost of production and the cost of sales?

  • Acost of production: decrease; cost of sales: decrease
  • Bcost of production: decrease; cost of sales: increase
  • Ccost of production: increase; cost of sales: decrease
  • Dcost of production: increase; cost of sales: increase

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