Departments K Y

Opening 2,500 800

Purchases 120,000 100,000

Sales 180,000 200,000

Salary 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 # 60,700
  • B #23,500
  • C #60,500
  • D #82,500
jamb 2016accounting

The correct answer is C. #60,500

Sales - Cost of Goods Sold = Gross Profit

COGS = Beginning Inventory + Purchases During the Period – Ending Inventory.

COGS = 2,500, +  120,000 - 3,000 = 119,500

gross profit for K = 180,000 - 119,500 = 60,500

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