Waec Model Questions Vol1 2024 Financial Accounting Question 10

A manufacturing company produces a single product. For the month of June the following data are given: - Opening stock of raw materials: ₦40,000 - Purchases of raw materials: ₦120,000 - Closing stock of raw materials: ₦30,000 - Direct labour cost: ₦80,000 - Factory overhead applied at 150 % of direct labour cost. - Opening work‑in‑progress (WIP): ₦25,000 (valued on cost incurred) - Closing WIP: ₦20,000 (valued on cost incurred) - Opening finished goods stock: ₦50,000 - Closing finished goods stock: ₦45,000 - Selling and distribution expenses: ₦30,000 - Administrative expenses: ₦25,000 - Sales revenue: ₦500,000 During the month an abnormal loss of raw material costing ₦5,000 occurred but was not recorded in the raw‑material accounts. Calculate the gross profit for the month, treating the abnormal loss as a separate expense (i.e., not included in the cost of goods sold).