Transfer of Goods Manufactured From The Manufacturing Department To The Sales Department - SS2 Accounting Past Questions and Answers - page 1
1
What is the purpose of transferring goods from the manufacturing department to the sales department?
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A
To generate revenue for the organization
B
To reduce the cost of goods sold
C
To store finished goods in the warehouse
D
To increase the cost of goods sold
2
What document is used to accompany the transfer of goods from the manufacturing department to the sales department?
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A
Purchase order
B
Invoice
C
Delivery note
D
Payment voucher
3
How is the cost of goods sold calculated?
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A
Cost of goods transferred to sales department / Total units produced x Units sold
B
Sales revenue - Gross profit
C
Cost of goods transferred to sales department x Units sold
D
Gross profit - Sales revenue
4
What account is debited when goods are transferred from the manufacturing department to the sales department?
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A
Cost of goods sold
B
Finished goods inventory
C
Work-in-progress inventory
D
Sales revenue
5
What account is credited when goods are transferred from the manufacturing department to the sales department?
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A
Cost of goods sold
B
Finished goods inventory
C
Work-in-progress inventory
D
Sales revenue
6
A manufacturing company produces 1,000 units of a product and transfers 600 units to the sales department. The cost of manufacturing the 1,000 units was ₦50,000, and the cost of the 600 units transferred to the sales department was ₦30,000. The selling price of each unit is ₦100, and the sales department sold 500 units. What is the gross profit on the sale of goods?
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7
ABC TECH produces 500 units of a product and transfers 400 units to the sales department. The cost of manufacturing the 500 units was ₦40,000, and the cost of the 400 units transferred to the sales department was ₦32,000. The selling price of each unit is ₦80, and the sales department sold 300 units. What is the cost of goods sold?
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