Use the following information to answer questions 11 and 12 Prime cost Factory overheads Work-in-progress (1/1/2024) Work-in-progress (31/12/2024) Cost of goods sold

$$\text{Total Manufacturing Cost} = \text{Prime Cost} + \text{Factory Overheads}$$ $$\text{Total Manufacturing Cost} = \text{D } 36,700 + \text{D } 6,600$$ $$\text{Total Manufacturing Cost} = \text{D } 43,300$$

$$\text{Cost of Goods Manufactured} = \text{Total Manufacturing Cost} + \text{Opening WIP} - \text{Closing WIP}$$ $$\text{Cost of Goods Manufactured} = \text{D } 43,300 + \text{D } 4,300 - \text{D } 3,600$$ $$\text{Cost of Goods Manufactured} = \text{D } 47,600 - \text{D } 3,600$$ $$\text{Cost of Goods Manufactured} = \text{D } 44,000$$

The formula for Cost of Finished Goods Available for Sale (COGAFS) is:

$$\text{COGAFS} = \text{Opening Finished Goods Inventory} + \text{Cost of Goods Manufactured}$$

The problem does not provide a value for Opening Finished Goods Inventory. In such cases, it is a common accounting practice to assume that the opening finished goods inventory is zero unless stated otherwise.

Assuming Opening Finished Goods Inventory = D 0:

$$\text{COGAFS} = \text{D } 0 + \text{D } 44,000$$ $$\text{COGAFS} = \text{D } 44,000$$

This value matches option B. The Cost of Goods Sold (D 38,000) is additional information that could be used to calculate closing finished goods inventory (D 44,000 - D 38,000 = D 6,000), but it is not needed to find the Cost of Finished Goods Available for Sale under the assumption of zero opening finished goods inventory.

The cost of finished goods available for sale is $\text{D } \textbf{44,000}$.