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Use the information to answer questions .........................     Departments ...........................           ...

Accounts - Principles of Accounts
JAMB 2009

Use the information to answer questions

.........................     Departments
...........................                      P                Q                R
Sales value...............                           N23,400
Selling expenses..........      1,100         N1,400         N1,280
Administrative expenses...N1,400       N1,000          N1,020
Cost of sales.............      N6,900....    N6,700           N5,500

Sales value of department Q doubles that of p, which is 1/3 of R. Depreciation which amounts to N1,800 is to be apportioned among the three departments in the ratio 3:5:7 respectively.

Determine the total expenses of department P?

  • A. 9,760
  • B. 9,400
  • C. 2,860
  • D. 2,500
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Correct Answer: Option C
Explanation

Depreciation is considered an operating expense so it will be added to the expenses.

Total expense of P = Selling expenses +  Administrative expenses +  depreciation

1100 + 1400 + \(\frac{3}{15}\) x 1800 

1100 + 1400 + 360 = 2,860


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