In manufacturing account, the work-in-progress at the end of the year is
-
A.
deducted from the cost of goods completed during this year -
B.
added to the cost of goods completed -
C.
stated in the profit and loss account -
D.
stated in the prime cost section
Correct Answer: Option A
Explanation
Work in progress for the year is gotten by = WIP beginning balance + manufacturing costs – the cost of goods completed.