JAMB Accounting Past Questions & Answers - Page 136

676.

The addition of prime cost, indirect cost and opening work-in-progress less the closing work-in-progress will result in cost of

A.

Goods available for sale

B.

Goods sold

C.

Goods manufactured

D.

Materials put into production

Correct answer is C

The cost of goods manufactured equation is calculated by adding the total manufacturing costs; including all direct materials, direct labor, and factory overhead; to the beginning work in process inventory and subtracting the ending goods in process inventory.

 

677.

When goods produced are transferred at cost plus mark-up sale, the difference between the cost and the transferred price is a

A.

Discount

B.

Sales commission

C.

Manufacturing profit

D.

Factory reserves

Correct answer is C

The Manufacturing Profit, is the excess of transfer value of goods manufactured over their actual production cost.

678.

Given:

Drawings - #3,500
Net loss - #2,500
Capital 1/1/2007 - #35,000
Additional capital - #10,000

The adjusted capital as at 31/1/2007 is

A.

#35,000

B.

#39,000

C.

#45,000

D.

#46,000

Correct answer is B

Adjusted capital=

capital + additional capital - net loss - drawings

35,000 +10,000 -3500 -2500 = 39,000

 

679.

The estimated profit or loss for a period is calculated by

A.

Closing capital less opening capital add drawings

B.

Opening capital less closing capital add drawings

C.

Opening capital less drawings add closing capital

D.

Opening capital add closing add drawings

Correct answer is A

No explanation has been provided for this answer.

680.

Given:
Opening capital - #50,000
Closing capital - #64,000
Drawings - #16,000

Determine the net profit.

A.

#2,000

B.

#14,000

C.

#20,000

D.

#30,000

Correct answer is D

closing capital - opening capital  + drawings

64,000 - 50,000 - 16,000 = 30,000