Use the following information to answer the questions below A manufacturing company's cost of production was D 200,000. The finished goods were transferred ...

The value of the closing stock of finished goods in the trading account is D19,800. To calculate the value of the closing stock of finished goods, we first need to calculate the cost of goods sold (COGS). The COGS is calculated as follows: COGS = Cost of production + Purchases - Closing stock In this case, we are given that the cost of production is D200,000 and there were no purchases. To calculate the closing stock, we need to first calculate the cost of the goods transferred to the warehouse. This is calculated as follows: Cost of goods transferred = Cost of production + Profit margin Cost of goods transferred = D200,000 + 10% of D200,000 (profit margin) Cost of goods transferred = D200,000 + D20,000 Cost of goods transferred = D220,000 Since 9% of the finished goods were still in stock, the closing stock is calculated as follows: Closing stock = 9% of D220,000 Closing stock = D19,800 Therefore, the value of the closing stock of finished goods in the trading account is D19,800.