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 – deducted from the cost of goods completed during this year

Explanation

Work in progress for the year is gotten by = WIP beginning balance + manufacturing costs – the cost of goods completed.