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WAEC Financial Accounting 2002 Question 10

Question 10

Manufacturing Accounts

Raw Materials: Stock 1/1/2000 N4,500; Purchases N30,000; Stock 31/12/2000 N6,000
Wages: direct N34,200; indirect N10,800
Factory expenses: rent N18,000; insurance N3,000
Work-in-progress: 1/1/2000 N3,750; 31/12/2000 N6,750
The amount of factory overhead is

  1. A.N42,300
  2. B.N31,800
  3. C.N28,800
  4. D.N21,000.
Show the answer and explanation

Answer: B (N31,800)

Explanation

Indirect wages 10,800 + rent 18,000 + insurance 3,000 = N31,800.