Department K Y

Opening stock #2,500 #800

Purchases #120,000 #100,000

Sales #180,000 #200,000

Salaries #8,000 #30,000

Closing stock #3,000 #1,500

Rate expenses of #1,500 are apportioned in the ratio 1:2.

The gross profit for K is

  • A #23,500
  • B #60,500
  • C #60,700
  • D #82,500
jamb 2013accounting

The correct answer is B. #60,500

Sales - Cost of Goods Sold = Gross Profit.

cost of goods sold = opening stock + purchases - closing stock

COGS= 2500 + 120000 - 3000 = 119,500

180,000 - 119,500 =  60,500

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