Departments K Y Opening 2,500 800 Purchases 120,000 100,000 Sales 180,000 200,000 Salary 8,000 30,000
FINANCIAL
JAMB 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
Correct Answer: C. #60,500
Explanation
Sales - Cost of Goods Sold = Gross Profit
COGS = Beginning Inventory + Purchases During the Period – Ending Inventory.
COGS = 2,500, + 120,000 - 3,000 = 119,500
gross profit for K = 180,000 - 119,500 = 60,500
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