Loading....

WAEC SSCE - Financial Accounting - 1998 (Objective)

Question 1 Report

Use the following information to answer the given question
\(\begin{array}{c|c} & N \\ \hline \text{Opening stock of Raw Materials} & 5,800 \\ \text{Closing stock of Raw Materials} & 4,500 \\ \text{Raw material purchased} & 19,000\\ \text{Carriage outwards} & 1,300 \\ \text{Direct labour} & 4,000 \\ \text{Electricity(Factory)} & 2,500 \\ \text{Supervisor's salary} & 5,500 \\ \text{Depreciation of Plant} & 1,500 \\ Sales & 58,000 \\ \text{Closing stock(Finished Goods)} & 4,500 \\ \text{Administrative expenses} & 5,500 \\ \text{selling and Distribution Expenses} & 3,000\end{array}\)
What is the production cost?
Answer Details
To find the production cost, we need to add the cost of raw materials used, direct labor cost, and factory overheads (electricity and depreciation of plant). The cost of raw materials used can be calculated as follows: Raw materials used = Opening stock of raw materials + Purchases - Closing stock of raw materials = 5,800 + 19,000 - 4,500 = 20,300 The factory overheads can be calculated as: Factory overheads = Electricity + Supervisor's salary + Depreciation of plant = 2,500 + 5,500 + 1,500 = 9,500 Therefore, the production cost can be calculated as: Production cost = Raw materials used + Direct labor cost + Factory overheads = 20,300 + 4,000 + 9,500 = N33,800 Hence, the answer is N33,800.
Read lesson note on Manufacturing Accounts (JAMB)
Read lesson note on Nature And Significance Of Accounting (JAMB)
View Answer