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JAMB Principles of Accounts 2005 Question 31

Question 31

Manufacturing Accounts

Use the information below to answer questions 30 and 31.
Purchase: Raw materials ₦15 000; Finished goods ₦11 400
Stock (1/7/01): Raw materials ₦2 250; Work-in-progress ₦1 875
Wages: Direct ₦17 100; Indirect ₦5 400
Stock (30/06/02): Raw materials ₦3 000; Work-in-progress ₦3 375
What is the cost of manufactured goods?

  1. A.₦49 125
  2. B.₦48 750
  3. C.₦37 625
  4. D.₦35 250
Show the answer and explanation

Answer: D (₦35 250)

Explanation

Materials 14 250 + direct wages 17 100 + indirect wages 5 400 = ₦36 750; add opening WIP 1 875, less closing WIP 3 375 = ₦35 250.