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WAEC Financial Accounting 1998 Question 43

Question 43

Manufacturing Accounts

Opening stock of Raw Materials: N5,800
Closing stock of Raw Materials: N4,500
Raw Materials Purchased: N19,000
Carriage outwards: N1,300
Direct labour: N4,000
Electricity (Factory): N2,500
Supervisor's salary: N5,500
Depreciation of Plant: N1,500
Sales: N58,000
Closing stock (Finished Goods): N4,500
Administrative Expenses: N5,500
Selling and Distribution Expenses: N3,000
What is the factory overhead?

  1. A.N10,800
  2. B.N9,800
  3. C.N9,500
  4. D.N8,500
  5. E.N5,300.
Show the answer and explanation

Answer: C (N9,500)

Explanation

Electricity 2,500 + supervisor 5,500 + depreciation 1,500 = N9,500.