JAMB - Accounts Principles Of Accounts (2024 - No. 75)
The following balances was extracted from the books of Oluwalambe Ltd, manufacturer, on 31st December 2007
| Stock of raw materials 1 - 1 - 2007 | 8000 |
|
Purchase of raw materials |
450000 |
|
Stock of raw materials 31 - 12 - 2007 |
95000 |
|
Direct wages |
65000 |
|
Indirect wages |
28000 |
|
Depreciation on plants |
32000 |
|
Factory rent |
3500 |
|
Work in progress 1- 1- 2007 |
32500 |
|
Work in progress 31 - 12- 2007 |
37500 |
Cost of goods produced is
#520,000
#530,000
#558,500
#559,000
Explanation
Cost of Goods Produced = Prime Cost + Factory Overhead Cost + Opening Work in Progress - Closing Work in Progress
Prime Cost: #500,000 (from previous question) Factory Overhead Cost: #63,500 (from previous question)
Cost of Goods Produced = #500,000 + #63,500 + #32,500 - #37,500
Cost of Goods Produced = #558,500
Prime Cost: #500,000 (from previous question) Factory Overhead Cost: #63,500 (from previous question)
Cost of Goods Produced = #500,000 + #63,500 + #32,500 - #37,500
Cost of Goods Produced = #558,500
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