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WAEC Commerce 2008 Question 39

Question 39

Business Calculations

Use the following information: This extract is from Eniola 'Computer Services, Aba' (₦): Sales 200,000.00; Stock 1/1/2004 25,000.00; Stock 31/12/2004 35,000.00; Purchases 145,000.00; Returns inwards 20,000.00; Sales and distribution expenses 13,000.00; Wages and salaries 8,000.00.
The cost of goods sold is

  1. A.N135,000.00
  2. B.N115,000.00
  3. C.N60,000.00
  4. D.N35,000.00.
Show the answer and explanation

Answer: A (N135,000.00)

Explanation

Cost of goods sold = 25,000 + 145,000 − 35,000 = N135,000 (returns inwards are deducted from sales, not purchases).