JAMB Past Questions and Answers - Page 1207

6,031.

Total production cost- #360,000
Factory overhead cost- #56,000
Selling price per unit- #120
Production volume 4000 units

Determine the value of prime cost.

A.

#416,000

B.

#304,000

C.

#240,000

D.

#184,000

Correct answer is B

Prime cost is the direct cost of a commodity in terms of the materials and labour involved in its production, excluding fixed costs and overheads.

360,000 - 56,000 = 304,000

6,032.

Total production cost- #360,000
Factory overhead cost- #56,000
Selling price per unit- #120
Production volume 4000 units

What is the total manufacturing profit?

A.

#64,000

B.

#120,000

C.

#360,000

D.

#480,000

Correct answer is B

selling price x production volume
120 x 4000 = 480,000

Total sales - cost of production

480,000 - 360,000 = 120,000 (profit)

6,033.

In manufacturing accounts, finance expenses are charged to the

A.

Departmental account

B.

Trading account 

C.

Profit and loss account

D.

Balance sheet

Correct answer is C

profit and loss account is an account in the books of an organization to which incomes and gains are credited and expenses and losses debited, so as to show the net profit or loss over a given period.

 

6,034.

Which of the following is a debit item in the sales ledger control account?

A.

Cheque reciepts

B.

Dishonoured cheques

C.

Discount allowed

D.

Bills receivable

Correct answer is D

The sales ledger control account is used to monitor the amounts owed by customers to your business.   it contains transactions related to all the trade receivables (all the debtors) in the business,

 Bills receivables are drawn when a vendor or seller makes any credit sale to the business.

6,035.

Purchasers ledger control account can also be referred to as

A.

Sales day book

B.

Purchasers day book

C.

Creditors ledger

D.

Debtors ledger

Correct answer is C

The Creditors Ledger accumulates information from the purchases journal. The purpose of the Creditors Ledger is to provide knowledge about which suppliers the business owes money, and how much. It is also known as accounts payable or purchase journal.