MN plc uses a JIT system and backflush accounting. It does not use a raw material stock control account.
During April 1000 units were produced and sold. The standard cost per unit is £100: this includes materials of £45. During April £60 000 of conversion costs were incurred.
The debit balance on the cost of goods sold account for April was:
(a) £90,000
(b) £95,000
(c) £105,000
(d) £110,000
(e) £11,500