Manufacturing Accounts - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 21:

• JAMB 2002

Use the information below to answer question
Stock of raw materials (1st January) N3000
Direct wages N2500
Direct expenses N1000
Factory overheads N2000
Cost of raw materials used N5500
Stock of finished goods (31st December) N2000
Determine the prime cost?

A. N7500
B. N6500
C. N9000
D. N8000

Question 22:

• JAMB 2002

Stock or raw materials(1st January) 3000
Direct wages 2500
Direct expenses 1000
Factory overheads 2000
Cost of raw materials used 5500
Stock of finished goods (31st December) 2000
The cost of goods manufactured is?

A. N11000
B. N12000
C. N14000
D. N9000

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

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

Question 25:

• JAMB 2002

The gross profit on manufactured goods is the difference between the cost of goods manufactured and the

A. Market value of goods produced
B. Prime cost of production
C. Indirect cost of production
D. Goods produced.