Question on: JAMB Accounting - 2022
| N | |
|
Stock at branch 1st January at cost | 400 |
|
Goods sent to branch at cost | 8000 |
|
Returns to head office | 340 |
|
Cash sales | 9160 |
|
Stock at branch 31st December at cost | 720 |
Use the information below to answer the question.
Adex Ltd. Issues stock to its retail branches at cost price. The following particulars relate to Ede branch.
#1870
#1530
#1640
#1820
To find the cost of goods sold (COGS) for the Ede branch, you can use the following formula:
\[ \text{COGS} = (\text{Opening Stock} + \text{Goods Sent}) - \text{Returns} \]
Given the information:
\[ \text{COGS} = (400 + 8000) - 340 \]
\[ \text{COGS} = 8240 - 340 \]
\[ \text{COGS} = 7900 \]
Now, subtract the closing stock from the calculated COGS to find the cost of goods sold:
\[ \text{Cost of Goods Sold} = \text{COGS} - \text{Closing Stock} \]
\[ \text{Cost of Goods Sold} = 7900 - 720 \]
\[ \text{Cost of Goods Sold} = 7180 \]
The cost of goods sold for the Ede branch is #7180.
Add your answer
Please share this, thanks!
No responses