Use the information below to answer this question: Dept A Dept B Sales 180,000 150,000 Cost of sales 79,000 85,000 Expense 28,000 40,000 How much is the gro...
Assessment:JAMB UTME - Principles of Accounts - 2015Subject:Financial Accounting
Use the information below to answer this question:
Dept A
Dept B
Sales
180,000
150,000
Cost of sales
79,000
85,000
Expense
28,000
40,000
How much is the gross profit for department A?
Answer Details
To calculate the gross profit for department A, you need to subtract the cost of sales from the sales revenue.
Sales revenue for department A = ₦180,000
Cost of sales for department A = ₦79,000
Therefore, the gross profit for department A is:
Gross profit = Sales revenue - Cost of sales
Gross profit = ₦180,000 - ₦79,000
Gross profit = ₦101,000
So, the correct answer is ₦101,000.