Question on: JAMB Accounting - 2016

Departments K Y

Opening 2,500 800

Purchases 120,000 100,000

Sales 180,000 200,000

Salary 8,000 30,000

Closing stock 3,000 1,500

Rate expenses of 1,500 are apportioned in the ratio 1:2

The gross profit for K is

A
# 60,700
B
#23,500
C
#60,500
D
#82,500
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Correct Option: C

Here's how to calculate the gross profit for Department K:

  1. Calculate Cost of Goods Sold (COGS) for Department K:

    • Opening Stock: 2,500
    • Purchases: 120,000
    • Closing Stock: 3,000
    • COGS = Opening Stock + Purchases - Closing Stock
    • COGS = 2,500 + 120,000 - 3,000 = 119,500
  2. Calculate Gross Profit for Department K:

    • Sales: 180,000
    • COGS: 119,500

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