Post Utme Accounts - Principles of Accounts Past Questions and Answers

Question 61:

Given: N - Prime cost − ₦220,000,
Factory cost − ₦32,000, Work in progress at beginning − ₦25,000, Work In progress at close − ₦19,000, Administrative expenses − ₦21,000, Determine the production cost.

A. ₦296,000
B. ₦277,000
C. ₦258,000
D. ₦246,000

Question 62:

Given: N - Direct material − ₦10,000,
Direct labour − ₦5,000, Direct expenses − 2,000, Factory overhead − 4,000. What is the prime cost?

A. ₦21,000
B. ₦17,000
C. ₦15,000
D. ₦6,000

Question 63:

The difference between a trading account and a manufacturing account is that while manufacturing account ____

A. Has no particular period, the trading
account has
B. Does not consider cost of goods involved, the trading account does
C. Is concerned with the cost of production, the trading account is not.
D. Is not concerned with stock of raw
materials, the trading account is.

Question 64:

The factory cost of goods produced is made up of ____

A. Prime cost and factory overhead
B. Prime cost and office overhead
C. Raw materials consumed and fixed cost
D. Raw materials and administrative
overhead.

Question 65:

The following information is provided for Amusa Company Ltd a manufacturer: Prime cost - ₦999,000, Manufacturing overhead − ₦132,000, Closing work in progress − ₦75,000, Value of finished goods transferred to the Trading Account —
₦1,116,000, If included in the manufacturing overhead were rents of ₦5,000 paid in advance, what is the opening work in progress for the period?

A. ₦85,000
B. ₦80,000
C. ₦70,000
D. ₦65,000