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

Question 36:

• 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
Calculate the prime cost?

A. N597000
B. N579000
C. N576000
D. N5967000

Question 37:

• JAMB 2009

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
Determine the gross profit?

A. 49,000
B. 48,000
C. 31,000
D. 30,000

Question 38:

• JAMB 2009

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

Question 39:

• JAMB 2010

The gross loss on manufacturing is always transferred to the?

A. Credit side of balance sheet
B. Debit side of profit and loss account
C. Credit side of profit and loss account
D. Debit side of balance sheet

Question 40:

• JAMB 2010

The depreciation on a motor vehicle that is being used for manufacturing and administration is charged to the?

A. Debit side of manufacturing and profit and loss account
B. Debit side of profit and loss account only
C. Credit side of profit and loss account only
D. Debit side of manufacturing and balance sheet