Gce Model Questions Vol1 2019 Financial Accounting Question 18
Practice objective / multiple choice question 18 from the 2019 Gce Model Questions Vol1 Financial Accounting examination.
A manufacturing company provided the following information for the year:\n\n- Opening raw material stock: \(40,000\)\n- Purchases of raw material: \(120,000\)\n- Closing raw material stock: \(30,000\)\n- Opening work‑in‑progress: \(20,000\)\n- Closing work‑in‑progress: \(25,000\)\n- Opening finished goods: \(35,000\)\n- Closing finished goods: \(40,000\)\n- Direct labour cost: \(80,000\)\n- Manufacturing overhead is applied at \(150\%\) of direct labour.\n- Actual overhead incurred: \(115,000\)\n- By‑product sold for: \(10,000\)\n- Sales revenue: \(340,000\)\n- Sales returns: \(10,000\)\n\nCalculate the gross profit for the year, taking into account the overhead absorption variance and the by‑product sale.
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About This Question
This is Gce Model Questions Vol1 2019 Financial Accounting Question 18. It is one of the objective questions from the 2019 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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