The provided text contains answers to multiple-choice questions related to cost accounting and inventory management, including a calculation for closing stock using the FIFO method. What are the origi

Here are the answers to questions 6 through 14: Question 6: The amount used up to provide a service is the cost. The correct option is A. Question 7: A variable cost changes directly with the volume of production. The correct option is C. Question 8: Direct wages are a component of prime cost, which includes direct materials and direct labor. The correct option is B. Question 9: The process of keeping stores at their optimal level to balance supply and demand while minimizing costs is called inventory control. The correct option is D. Question 10: A goods received note (GRN) is used to check the goods sent by the supplier against the purchase order. The correct option is B. Question 11: The economic order quantity (EOQ) is the most cost-effective quantity of goods to order at a time, as it minimizes total inventory costs. The correct option is D. Question 12: A stock verification sheet is the document used to record the results of continuous stocktaking. The correct option is B. Question 13: Calculate the closing stock using the FIFO method of pricing issues. Step 1: Determine the available stock before issues. • July 1: 200 units @ D 2.50 = D 500 • July 5: 400 units @ D 3.00 = D 1,200 Total units available = 200 + 400 = 600 units. Step 2: Apply the FIFO (First-In, First-Out) method for issues. On July 10, 400 units are issued. Under FIFO, the first units purchased are the first ones issued. • Issue 200 units from July 1 stock @ D 2.50. • Remaining units to issue = 400 - 200 = 200 units. • Issue 200 units from July 5 receipt @ D 3.00. Step 3: Calculate the remaining closing stock. The remaining stock consists of the units from the July 5 receipt that were not issued. • Units remaining from July 5 receipt = 400 - 200 = 200 units. • Value of closing stock = 200 units × D 3.00/unit = D 600. The correct option is B. D 600 Question 14: What is the cost of issues using FIFO method of pricing issues? Step 1: Identify the units issued under FIFO. As determined in Question 13, 400 units were issued: • 200 units from July 1 stock @ D 2.50 • 200 units from July 5 receipt @ D 3.00 Step 2: Calculate the total cost of these issued units. • Cost of 200 units from July 1 = 200 × D 2.50 = D 500 • Cost of 200 units from July 5 = 200 × D 3.00 = D 600 • Total cost of issues = D 500 + D 600 = D 1,100. The correct option is C. D 1,100 3 done, 2 left today. You're making progress.