The following balances was extracted from the books of Oluwalambe Ltd, manufacturer, on 31st December 2007 Stock of raw materials 1 - 1 - 2007 8000 Purchase...

Assessment: JAMB UTME - Principles of Accounts - 2024 Subject: Financial Accounting

Question 1 Report

The following balances was extracted from the books of Oluwalambe Ltd, manufacturer, on 31st December 2007

Stock of raw materials 1 - 1 - 2007  8000

Purchase of raw materials

450000

Stock of raw materials 31 - 12 - 2007 

95000

Direct wages

65000

Indirect wages

28000

Depreciation on plants

32000

Factory rent

3500

Work in progress 1- 1- 2007 

32500

 Work in progress 31 - 12- 2007

37500

Cost of goods produced is

Answer Details
Cost of Goods Produced = Prime Cost + Factory Overhead Cost + Opening Work in Progress - Closing Work in Progress 
Prime Cost: #500,000 (from previous question) Factory Overhead Cost: #63,500 (from previous question) 
Cost of Goods Produced = #500,000 + #63,500 + #32,500 - #37,500 
Cost of Goods Produced = #558,500 

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