JAMB - Accounts Principles Of Accounts (2013 - No. 38)
Department K Y
Opening stock #2,500 #800
Purchases #120,000 #100,000
Sales #180,000 #200,000
Salaries #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
Opening stock #2,500 #800
Purchases #120,000 #100,000
Sales #180,000 #200,000
Salaries #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
#23,500
#60,500
#60,700
#82,500
Explanation
Sales - Cost of Goods Sold = Gross Profit.
cost of goods sold = opening stock + purchases - closing stock
COGS= 2500 + 120000 - 3000 = 119,500
180,000 - 119,500 = 60,500
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