Use the following information to answer the question The following transactions relate to Osei Enterprises...
FINANCIAL
WAEC 2023
Use the following information to answer the question
The following transactions relate to Osei Enterprises for the year ended 31st December 2020.
| D | |
Purchases | 160,000 |
| Returns outwards | 880 |
| Carriage inwards | 740 |
| Returns inwards | 620 |
| Sales | 195,000 |
| Salaries | 27,600 |
| Closing stock | 14,100 |
The cost of goods available for sale is
- A. D 175,860
- B. D 175,380
- C. D 175, 120
- D. D 175,460
Correct Answer: D. D 175,460
Explanation
To calculate the cost of goods available for sale, we need to add the purchases, returns inwards, and carriage inwards to the opening stock.
The given information states:
Purchases: D160,000
Returns inwards: D620
Carriage inwards: D740
Opening stock: D14,100
To calculate the cost of goods available for sale, we add these amounts:
D160,000 + D620 + D740 + D14,100 = D175,460
Therefore, the cost of goods available for sale is D175,460.
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