O Level Accounting (7707)•7707/12/M/J/22

Explanation
Change in work-in-progress impacts cost of production calculation Steps:
- Identify opening WIP: $200.
- Identify closing WIP: $3,400.
- Compute change: 200 = $3,200 increase in WIP.
- Apply formula: Total manufacturing costs incurred = Cost of goods manufactured + (Closing WIP - Opening WIP); thus, 3,200, but options do not match.
Not enough information: Options suggest a 1,600 effect, but data yields $3,200; ambiguous definition of "cost of production" (e.g., COGM vs. total incurred costs).
Final answer: Not enough information.
Topic: Manufacturing accounts
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