| Opening stock | ₦ |
| Department A B |
100 800 |
| Purchases: A B Wages of workers Salaries |
1500 2000 50 100 |
| Sales A B |
3000 5000 |
Expenses are to be shared in the ratio of sales.
The cost of goods for department B is
4,120
3400
3000
2800
Correct answer is D
Cost of goods sold for departmental B
opening stock + purchases - closing stock
800 + 2000
⇒ **2,800
20,580
10,290
7980
30,870
Correct answer is B
Goods sent to branch : Selling price
⇒ ₦30,870
Convert mark-up to margin
| 50
100 |
= | 1
2 |
= | 1
2 + 1 |
= | 1
3 |
| Profit | = | 1
3 |
× | 30,870 |
= ₦10,290
Goods can be charged to branches using any of these pricing methods except
Cost price
Cost plus percentage
Selling price
Selling plus percentage
Correct answer is D
There are three different pricing methods which are used for charging goods to branches.
They are:
1. At cost price
2. At cost plus a percentage
3. At selling price.
The following information were extracted from the books of Miliki state
Sinking of bore holes Purchase of Motor car Stationery Electricity Purchase of drugs Purchase of beds |
₦ 2,900,000 920,000 300,000 45,000 76,000 425,000 |
Capital expenditure is
₦345,000
₦3,245,000
₦421,000
₦4,245,000
Correct answer is D
| Capital Expenditure | ₦ |
| Sinking of boreholes Purchase of motor cars Purchase of beds |
2,900,000 920,000 425,000 |
| 4,245,000 |
The following information were extracted from the books of Miliki state
Sinking of bore holes Purchase of Motor car Stationery Electricity Purchase of drugs Purchase of beds |
₦ 2,900,000 920,000 300,000 45,000 76,000 425,000 |
Recurrent expenditure is
₦345,000
₦3,245,000
₦421,000
₦4,245,000
Correct answer is C
| Recurrent expenditure | ₦ |
| Stationery Electricity Purchase of drugs |
300,000 45,000 76,000 |
| 421,000 |