JAMB - Accounts Principles Of Accounts (2009 - No. 30)

Use the information to answer question below

......................... Departments
...........................  P  Q  R
Sales value............... N23,400
Selling expenses..........  1,100 N1,400 N1,280
Administrative expenses...N1,400 N1,000  N1,020
Cost of sales.............  N6,900....  N6,700 N5,500

Sales value of department Q doubles that of p, which is 1/3 of R. Depreciation which amounts to N1,800 is to be apportioned among the three departments in the ratio 3:5:7 respectively.

What is the sales value of department R?
N7,800
N11,700
N23,400
N35,100

Explanation

sales volume of Q = 23,400

If sales volume of Q doubles that of p which is \(\frac{1}{3}\) of R we have;
for P = 23,400 ÷ 2p

p = \(\frac{23,400}{2}\) = 11,700

Since R is \(\frac{1}{3}\) of P, hence we have,

R= 1/3P
R = 3 x P

R =  \(\frac{3}\times{11700}\)  = 35,100

 

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