passwella.
Menu

WAEC Financial Accounting 2017 Question 22

Question 22

Manufacturing Accounts

The excess of the market value of goods produced over the cost of production is

  1. A.profit on manufacturing.
  2. B.net profit.
  3. C.goodwill.
  4. D.gross profit.
Show the answer and explanation

Answer: A (profit on manufacturing.)

Explanation

When goods are transferred at market value, the excess over cost is the manufacturing profit.