Preparation of manufacturing account - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 31:

• JAMB 2006

Use the information below to answer question .
Prime cost..................N12 100
lighting....................N10 000
Heating.....................N15 000
Factory overhead............?
The production department share of factory overhead is 1/4 and 1/2 of lighting and heating respectively.
The factory overhead is?

A. N5050
B. N7250
C. N2750
D. N5500

Question 32:

• JAMB 2006

Use the information below to answer question .
Prime cost..................N12 100
lighting....................N10 000
Heating.....................N15 000
Factory overhead............?
The production department share of factory overhead is 1/4 and 1/2 of lighting and heating respectively.
Interest on the drawings of partners is treated in the?

A. Profit and loss appropriation account
B. Goodwill account
C. Profit and loss account
D. Trading account

Question 33:

• JAMB 2007

Given:
Stock at start:
Raw materials................N57 000
Work-in-progress.............N42 000
Finished goods...............N71 000
Purchase of raw materials amount to N81 000, direct labour is N38 000 and factory overhead N29 000.
Calculate the prime cost?

A. N176 000
B. N170 000
C. N167 000
D. N156 000

Question 34:

• JAMB 2007

In the trading and profit and loss account of a manufacturing organization, purchases is?

A. Always the same amount as the total factory overhead cost
B. Given separately
C. Equivalent to the total cost of goods manufactured
D. Always the same as the prime cost

Question 35:

• JAMB 2008

Use the information below to answer questions .
Stock of material 1/1..............N10 000
Purchase of raw material...........N160 000
Manufacturing wages................N420 000
Royalties..........................N3 000
Stock of raw materials 31/12.......N14 000
What is the cost of raw materials consumed?

A. N173 000
B. N170 000
C. N160 000
D. N156 000