Transfer of Goods Manufactured From The Manufacturing Department To The Sales Department - SS2 Accounting Past Questions and Answers - page 1
What is the purpose of transferring goods from the manufacturing department to the sales department?
To generate revenue for the organization
To reduce the cost of goods sold
To store finished goods in the warehouse
To increase the cost of goods sold
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What document is used to accompany the transfer of goods from the manufacturing department to the sales department?
Purchase order
Invoice
Delivery note
Payment voucher
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How is the cost of goods sold calculated?
Cost of goods transferred to sales department / Total units produced x Units sold
Sales revenue - Gross profit
Cost of goods transferred to sales department x Units sold
Gross profit - Sales revenue
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What account is debited when goods are transferred from the manufacturing department to the sales department?
Cost of goods sold
Finished goods inventory
Work-in-progress inventory
Sales revenue
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What account is credited when goods are transferred from the manufacturing department to the sales department?
Cost of goods sold
Finished goods inventory
Work-in-progress inventory
Sales revenue
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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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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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