Neco Model Questions Vol1 2018 Financial Accounting Question 35

Practice objective / multiple choice question 35 from the 2018 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2018 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 35 NECO_MODEL_QUESTIONS_VOL1 • 2018 • FINANCIAL_ACCOUNTING • objective

Delta Manufacturing reported the following data for the year: - Opening raw‑material stock: \(\text{₦}50,000\) - Purchases of raw materials: \(\text{₦}200,000\) - Closing raw‑material stock: \(\text{₦}30,000\) - Opening work‑in‑progress (WIP): \(\text{₦}40,000\) - Closing WIP: \(\text{₦}20,000\) - Direct labour incurred: \(\text{₦}120,000\) - Manufacturing overhead applied: \(\text{₦}80,000\) - Normal loss rate: 5 % of total manufacturing inputs - Abnormal loss of finished goods: \(\text{₦}10,000\) - Closing finished‑goods inventory: \(\text{₦}30,000\) Using appropriate manufacturing‑account calculations, determine the cost of goods sold for the year.

Answer Options

A. Cost of goods sold = ₦431,000 (Normal loss ₦21,000; Abnormal loss ₦10,000 are shown separately in the statement of profit or loss)
B. Cost of goods sold = ₦411,000 (Normal loss ₦21,000; Abnormal loss ₦10,000 are shown separately in the statement of profit or loss)
C. Cost of goods sold = ₦401,000 (Normal loss ₦21,000; Abnormal loss ₦10,000 are shown separately in the statement of profit or loss)
Correct Answer D. Cost of goods sold = ₦421,000 (Normal loss ₦21,000; Abnormal loss ₦10,000 are shown separately in the statement of profit or loss)
Correct Answer
D
Correct Option:
Cost of goods sold = ₦421,000 (Normal loss ₦21,000; Abnormal loss ₦10,000 are shown separately in the statement of profit or loss)

About This Question

This is Neco Model Questions Vol1 2018 Financial Accounting Question 35. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

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