Question on: SS2 Accounting - Transfer of Goods Manufactured From The Manufacturing Department To The Sales Department
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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Cost of goods sold = Cost of goods transferred to sales department / Total units produced x Units sold = [₦32,000 / 500] x 300 = ₦19,200
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