Jamb Accounts - Principles of Accounts 2002 Past Questions and Answers

Question 21:

• JAMB 2002

Use the information below to answer questions
Adex Ltd. issues stock to its retail branches at cost price. The following particulars relate to Ede branch.
Stock at branch 1st January at cost............N400
Goods sent to branch at cost...................N8000
Returns to head ...............................N340
Cash sales ....................................N9160
Stock at branch 31st December at cost..........N720
What is the gross profit carried to the profit and loss account?

A. N1820
B. N1640
C. N1530
D. N1870

Question 22:

• JAMB 2002

Use the information below to answer questions Adex Ltd. issues stock to its retail branches at cost price. The following particulars relate to Ede branch. Stock at branch 1st January at cost............N400 Goods sent to branch at cost...................N8000 Returns to head ...............................N340 Cash sales ....................................N9160 Stock at branch 31st December at cost..........N720
Calculate the cost of goods credited to the head office trading account?

A. N7660
B. N7500
C. N7460
D. N7200

Question 23:

• JAMB 2002

Nasara Manufacturing Plc has three direct labour employees that work 40 hours each a week for 50 weeks a year. Factory overhead costs of N60,000 is distributed on the basis of direct labour hours.
Compute the overhead rate?

A. N12 per hour
B. N16 per hour
C. N10 per hour
D. N15 per hour

Question 24:

• JAMB 2002

Given that 1/3 of the N6000 stock held by a branch is purchased from outsiders. If goods are invoiced to branch at 25% on cost, the provision for unrealized profit is?

A. N1000.00
B. N333.33
C. N666.66
D. N800.00

Question 25:

• JAMB 2002

Costs that vary in proportion to the level of production in a manufacturing environment are known as?

A. Control costs
B. Overheads
C. Direct costs
D. Indirect costs