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Use the information below to answer question   Trading account for the year ended 31st...

Accounts - Principles of Accounts
JAMB 2018

Use the information below to answer question

 
Trading account for the year ended 31st December 2009

Opening Stock                                               32,000 Sales                48,000     
Purchases                           40,000 Less Return       2,000
Carriage inwards                   1,000  
                                            41,000  
Less Return                          2,000                 39,000  
   
Cost of goods available                                     ??  
Less closing stock                                            9,000  
Cost of goods sold                                            ??  

 

Calculate the cost of goods sold

  • A. #61,000
  • B. #62,000
  • C. #58,000
  • D. #57,000
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Correct Answer: Option B
Explanation

Cost of goods sold is the direct costs attributable to the production of the goods sold in a company.

  Cost of goods available for sale (32000 + 39000) = 71000

  Less closing stock = 9000

  Cost of goods sold = 7100 - 9000

 = 62000


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