Calculating Value of Closing WIP
(Manufacturing Costs Question)

by Jane
(Kenya)

Nairobi, Kenya

Q: Given the direct materials as $714,000, direct labour as $400,000, variable overheads as $100,000 and fixed overheads as $350,000. 90,000 units were sold at $20 each, closing stock of finished goods is 8,000 units and that of WIP is 4,000 units.