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:
-
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
-
Calculate Gross Profit for Department K:
- Sales: 180,000
- COGS: 119,500
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