JAMB Past Questions and Answers - Page 1198

5,987.

Opening stock of raw materials - #75,000
Purchase of raw materials - #330,000
Closing stock of raw materials - #80,000
Direct wages - #30,000
Carriages of raw materials - #10,000

Calculate the cost of raw materials used.

A.

#495,000

B.

#415,000

C.

#325,000

D.

#305,000

Correct answer is C

To calculate direct materials, add beginning direct materials to direct materials purchases and subtract ending direct materials.

75,000 + 330,000 - 80,000 = 325,000

5,988.

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.

 

5,989.

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.

5,990.

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