Question 7 The cost data relating to units of production for the year ending 31st December 2020 are as follows: Material (for 10,000 units actually produced) Subcontracted Labour (for 10,000 units actually produced) Production overheads £10,000 £20,000 £50,000 There are 1,000 units of inventory unsold at the year end. Production was half the normal activity level. Compute the inventories figure shown in the Statement of Financial Position as at 31st December 2020.

Question 7 The cost data relating to units of production for the year ending 31st December 2020 are as follows: Material (for 10,000 units actually produced) Subcontracted Labour (for 10,000 units actually produced) Production overheads £10,000 £20,000 £50,000 There are 1,000 units of inventory unsold at the year end. Production was half the normal activity level. Compute the inventories figure shown in the Statement of Financial Position as at 31st December 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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