Use the information below to answer questions below Work-in-progress 1/1........................N1,000 Work-in-progress 31/12......................N2,000 Production cost of...
FINANCIAL
JAMB 2009
Use the information below to answer questions below
Work-in-progress 1/1........................N1,000
Work-in-progress 31/12......................N2,000
Production cost of goods manufactured.......N20,000
Sales.......................................N50,000
Stock of finished goods 1/1.................N4,000
Stock of finished goods 31/12...............N5,000
Selling and distribution expenses...........N2,000
Administrative expenses.....................N1,000
What is the net profit?
- A. N46,000
- B. N45,000
- C. N28,000
- D. N27,000
Correct Answer: C. N28,000
Explanation
Trading profit and Loss Account
opening stock 4,000 Add: cost of products 20,000 24,000 Less: closing stock 5000 19,000 Gross profit 31,000 50,000 selling & dis. Exp 2000 Admin. Exp 1,000 3000 Net profit28,000 31,000 | Sales 50,000 G.profit b/d 31000 |
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