2024 - JAMB Accounting Past Questions and Answers - page 7

The council's expenditure includes:

• Salaries: 15,000
• Vehicles fueling: 7,000
• Hospital beds: 8,000
• Ambulance: 13,000

Total Expenditure = 15,000 + 7,000 + 8,000 + 13,000 = 43,000

Total Revenue = 5,000 + 20,000 + 10,000 + 12,000 = 47,000

To calculate the cost of goods produced:

1. Cost of Raw Materials Used

Opening Stock (8,000) + Purchases (450,000) − Closing Stock (95,000) = 363,000

2. Total Manufacturing Costs

• Raw Materials Used: 363,000
• Direct Wages: 65,000
• Indirect Wages: 28,000
• Depreciation: 32,000
• Factory Rent: 3,500

Total = 491,500

3. Cost of Goods Produced

Total Manufacturing Costs + Opening WIP (32,500) − Closing WIP (37,500)

= 491,500 + 32,500 − 37,500 = 486,500

The concept of double-entry bookkeeping was developed by Francia Luca Pacioli, often called the father of accounting.

The operating system manages computer hardware and software resources. Its functions include:

• Controlling input/output peripherals
• Managing memory
• File management
• Process management

Other options listed refer to input or output device functions, not OS functions.

Factory overhead includes all indirect factory costs:

• Indirect wages: 28,000
• Depreciation on plant: 32,000
• Factory rent: 3,500

Total Factory Overhead = 63,500

Since this figure is not an option, the closest option is 68,500 (Option B).

When a discount is allowed to a debtor, it reduces the amount owed. The correct entry is:

Debit Discount Allowed (expense)
Credit Debtor account