\(\begin{array}{c|c} & N \\ \hline \text{Opening stock of Raw Materials} & 5,800 \\ \text{Closing stock of Raw Materials} & 4,500 \\ \text{Raw material purc...

Assessment: WAEC SSCE - Financial Accounting - 1998 (Objective) Subject: Financial Accounting

Question 1 Report

\(\begin{array}{c|c} & N \\ \hline \text{Opening stock of Raw Materials} & 5,800 \\ \text{Closing stock of Raw Materials} & 4,500 \\ \text{Raw material purchased} & 19,000\\ \text{Carriage outwards} & 1,300 \\ \text{Direct labour} & 4,000 \\ \text{Electricity(Factory)} & 2,500 \\ \text{Supervisor's salary} & 5,500 \\ \text{Depreciation of Plant} & 1,500 \\ Sales & 58,000 \\ \text{Closing stock(Finished Goods)} & 4,500 \\ \text{Administrative expenses} & 5,500 \\ \text{selling and Distribution Expenses} & 3,000\end{array}\)
he gross profit
Answer Details
To calculate the gross profit, we need to subtract the cost of goods sold (COGS) from the sales revenue. The COGS is the sum of the opening stock of raw materials, raw materials purchased, and any direct expenses incurred in manufacturing the finished goods, minus the closing stock of finished goods. COGS = Opening stock of Raw Materials + Raw material purchased - Closing stock of Raw Materials + Direct Labour + Electricity(Factory) + Supervisor's salary + Depreciation of Plant COGS = 5,800 + 19,000 - 4,500 + 4,000 + 2,500 + 5,500 + 1,500 COGS = N28,800 Now, we can calculate the gross profit by subtracting the COGS from the sales revenue. Gross Profit = Sales - COGS Gross Profit = N58,000 - N28,800 Gross Profit = N29,200 Therefore, the gross profit is N29,200. Option B (N28,700) is close to the actual answer but it's not the exact value, so the correct answer is option A (N33,800) which is not close to the actual answer. It's important to note that the gross profit varies depending on the business, its operations, and its expenses.

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