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In June, XYZ Engineering Received an Order to Produce a Batch

Question 11

Multiple Choice

In June, XYZ Engineering received an order to produce a batch of 100 Maxilons. Each batch requires 50 purchased components and 75 labour hours. XYZ was unable to complete the order until July. The following transactions took place during the month of June:  Units  Unit cost  Purchase of components 75£30 Issue of components to job 30 Labour to produce finished goods  Hours  Cost/hour 40£45\begin{array}{|l|r|l|}\hline & \text { Units } &{\text { Unit cost }} \\\hline \text { Purchase of components } & 75 & £30 \\\hline \text { Issue of components to job }& 30 & \\\hline \text { Labour to produce finished goods } & \text { Hours } & \text { Cost/hour } \\\hline & 40 & £45\\\hline\end{array} The following transactions took place during the month of July:  Issue of components to job  Units  Unit cost 20 Hours  Cost/hour  Labour to produce finishedgoods 35£45 Completed 100 Maxilons \begin{array}{|l|r|r|}\hline \text { Issue of components to job } & \text { Units } & \text { Unit cost } \\\hline & 20 & \\\hline & \text { Hours } & \text { Cost/hour } \\\hline \text { Labour to produce finishedgoods }& 35 & £45\\\hline \text { Completed } 100 \text { Maxilons } \\\hline\end{array}
-The value of work in progress at the end of June is:


A) £5,625
B) £4,875
C) £2,700
D) £2,175

Correct Answer:

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