Waec Model Questions Vol1 2023 Financial Accounting Question 39

Practice objective / multiple choice question 39 from the 2023 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2023 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 39 WAEC_MODEL_QUESTIONS_VOL1 • 2023 • FINANCIAL_ACCOUNTING • objective

The following data relate to the manufacturing operations of XYZ Ltd for the month of March (amounts in Naira).\n\n- Opening Stock of Raw Materials: 200,000\n- Purchases of Raw Materials: 500,000\n- Closing Stock of Raw Materials: 150,000\n- Opening Work‑in‑Process (WIP): 120,000\n- Closing Work‑in‑Process (WIP): 100,000\n- Direct Labour: 250,000\n- Manufacturing Overhead is applied at 130 % of Direct Labour.\n- Opening Finished Goods: 180,000\n- Closing Finished Goods: 210,000\n- Sales (Revenue): 1,200,000\n- Sales Returns: 30,000\n- Discount Allowed: 20,000\n- Discount Received: 15,000\n\nUsing the above information, calculate (a) the Cost of Goods Sold and (b) the Gross Profit for the month.

Answer Options

A. Cost of Goods Sold = ₦1,325,000; Gross Profit = ₦-155,000
Correct Answer B. Cost of Goods Sold = ₦1,115,000; Gross Profit = ₦55,000
C. Cost of Goods Sold = ₦1,115,000; Gross Profit = ₦85,000
D. Cost of Goods Sold = ₦865,000; Gross Profit = ₦305,000
Correct Answer
B
Correct Option:
Cost of Goods Sold = ₦1,115,000; Gross Profit = ₦55,000

About This Question

This is Waec Model Questions Vol1 2023 Financial Accounting Question 39. It is one of the objective questions from the 2023 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

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