Use the information below to answer question Trading account for the year ended 31st December...
FINANCIAL
JAMB 2018
Use the information below to answer question
Trading account for the year ended 31st December 2009
| ? | ? |
| Opening Stock 32,000 | Sales 48,000 |
| Purchases 40,000 | Less Return 2,000 |
| Carriage inwards 1,000 | |
| 41,000 | |
| Less Return 2,000 39,000 | |
| Cost of goods available ?? | |
| Less closing stock 9,000 | |
| Cost of goods sold ?? |
- A. #20,500
- B. #23,000
- C. #28,000
- D. #27,000
Correct Answer: A. #20,500
Explanation
Average stock is the calculating the addition of stock at the beginning and at the end of the financial period and dividing the value by two.
It is the average value of products kept for sale during an accounting period.
Therefore:
Average stock = opening stock + closing stock/2
= 32000 + 9000/2
= 41000/2
= #20500
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