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WAEC SSCE - Financial Accounting - 1992 (Objective)

Question 1 Report

Nagode (Nig.) Ltd. has three departments A, B and C. You are given the following Information
(i)Rent for the year - N3,000
(ii) Selling and distribution expenses - N1,800
(iii) Department
\(\begin{array}{c|c} & Turnover & \text{Floor space in square meters} \\ & N & N \\ \hline A. & 40,000 & 120 \\ B. & 60,000 & 80 \\ C. & 80,000 & 100\end{array}\)
How much rent is apportioned to department C?
Answer Details
To apportion the rent to each department, we need to use a suitable basis that reflects the usage of the rented space by each department. In this case, we will use the floor space occupied by each department as the basis for apportionment. First, we need to calculate the total floor space of all departments: Total floor space = 120 + 80 + 100 = 300 square meters Next, we can calculate the percentage of the total floor space occupied by each department: Department A: 120/300 = 0.4 or 40% Department B: 80/300 = 0.2667 or 26.67% Department C: 100/300 = 0.3333 or 33.33% Using these percentages, we can apportion the rent to each department as follows: Rent apportioned to department A = 0.4 x N3,000 = N1,200 Rent apportioned to department B = 0.2667 x N3,000 = N800 Rent apportioned to department C = 0.3333 x N3,000 = N1,000 Therefore, the amount of rent apportioned to department C is N1,000. The correct option is (D).
Read lesson note on Departmental Accounts (JAMB)
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