JAMB - Accounts Principles Of Accounts (2012 - No. 22)

Total production cost- #360,000
Factory overhead cost- #56,000
Selling price per unit- # 120
Production volume 4000 units

What is the total manufacturing profit?
#64,000
#120,000
#360,000
#480,000

Explanation

selling price x production volume
120 x 4000 = 480,000

Total sales - cost of production

480,000 - 360,000 = 120,000 (profit)

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