Gce Model Questions Vol1 2018 Financial Accounting Question 20

A manufacturing company produces a single product. Data for the period are as follows: - Opening stock of raw materials: ₦80,000 - Purchases of raw materials: ₦250,000 - Closing stock of raw materials: ₦70,000 - Direct labour cost: ₦180,000 - Manufacturing overhead applied at 150 % of direct labour cost. - Opening work‑in‑process (WIP): ₦60,000 - Closing WIP: ₦50,000 - Opening finished goods: ₦90,000 - Closing finished goods (as recorded): ₦100,000, but a physical count shows it is overstated by ₦5,000. - Sales revenue: ₦1,200,000 - Selling & distribution expenses: ₦120,000 - Administrative expenses: ₦80,000 Calculate the cost of goods sold, gross profit and net profit for the period after adjusting for the over‑statement of finished‑goods stock.