To determine the total cost of production, we need to follow a systematic approach using the information provided. The total cost of production can be calculated using the following formula: Total Cost of Production = Direct Materials Used + Direct Labour + Production Overheads + Opening Work-in-Progress - Closing Work-in-Progress Step-by-Step Calculation

1. Identify the Components:
2. Direct Materials Used: 64,000
3. Direct Labour: 30,000
4. Production Overheads: 22,000
5. Work-in-Progress at Beginning: 9,000
6. Work-in-Progress at Close: 14,000
7. Plug the Values into the Formula:
8. Total Cost of Production = 64,000 (Direct Materials) + 30,000 (Direct Labour) + 22,000 (Production Overheads) + 9,000 (Opening WIP) - 14,000 (Closing WIP)
9. Perform the Calculation:
10. First, add the Direct Materials, Direct Labour, and Production Overheads:
    • 64,000 + 30,000 + 22,000 = 116,000
11. Next, add the Opening Work-in-Progress:
    • 116,000 + 9,000 = 125,000
12. Finally, subtract the Closing Work-in-Progress:
    • 125,000 - 14,000 = 111,000

Conclusion The total cost of production is 111,000. Explanation of the Correct Answer The correct option is C. 111,000. This value represents the total cost incurred in producing goods during the accounting period, taking into account all direct costs and adjustments for work-in-progress. Why Other Options Are Incorrect

• Option A: 94,000: This option likely results from not accounting for the opening work-in-progress or miscalculating the total direct costs.
• Option B: 106,000: This option may arise from incorrectly adding the components or miscalculating the work-in-progress adjustments.
• Option D: 116,000: This option represents the total of direct costs without considering the work-in-progress adjustments, leading to an overestimation.

Common Pitfalls

• Ignoring Work-in-Progress: Failing to adjust for the opening and closing work-in-progress can lead to significant errors in calculating total production costs.
• Miscalculating Direct Costs: Ensure that all components (materials, labour, overheads) are accurately summed before making adjustments.

Revision Summary

• The total cost of production includes direct materials, direct labour, production overheads, and adjustments for work-in-progress.
• The formula to calculate total cost of production is: [ \text{Total Cost of Production} = \text{Direct Materials} + \text{Direct Labour} + \text{Production Overheads} + \text{Opening WIP} - \text{Closing WIP} ]
• The correct answer for the total cost of production in this scenario is 111,000.
• Always double-check calculations and ensure all components are included to avoid common mistakes.