Use the information below to answer questions below Work-in-progress 1/1........................N1,000 Work-in-progress 31/12......................N2,000 Production cost of goods manufactured.......N20,000 Sales.......................................N50,000 Stock of finished goods 1/1.................N4,000 Stock of finished goods 31/12...............N5,000 Selling and distribution expenses...........N2,000 Administrative expenses.....................N1,000 What is the net profit?
A. N46,000 B. N45,000 C. N28,000 D. N27,000
Correct Answer: C
Explanation
              Trading profit and Loss AccountÂ
opening stock          4,000Add: cost of products    20,000    24,000Less: closing stock               5000                             19,000Gross profit                    31,000                             50,000selling & dis. Exp        2000Admin. Exp            1,000     3000Net profit                      28,000                             31,000      Â
