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GCE Financial Accounting 1989 Question 44

Question 44

Manufacturing Accounts

Use the Manufacturing and Trading Accounts shown (X marks figures you must work out). What is the cost of finished goods Purchased?

Diagram for this question
  1. A.₦60,000
  2. B.₦50,000
  3. C.₦40,000
  4. D.₦30,000
  5. E.₦20,000
Show the answer and explanation

Answer: E (₦20,000)

Explanation

Cost of sales is 132,000, so goods available = 132,000 + closing stock 12,000 = 144,000; purchases = 144,000 − 10,000 − 114,000 = ₦20,000.