O-LevelAccountingPreparation of financial statements7707/13 · Oct/Nov 2021 · Q251 Mark
The value of Thato's work in progress increased during the year. This was recorded in his financial statements. How did this affect the cost of production and the cost of sales?
Acost of production: decreased, cost of sales: decreased
Bcost of production: decreased, cost of sales: no effect
Ccost of production: increased, cost of sales: increased
Dcost of production: increased, cost of sales: no effect
✓ Correct answer
A: cost of production: decreased, cost of sales: decreased
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