Principles Of Accounts 2005 Jamb Examination
Question 21
Use the information below to answer this question:
\[
\begin{array}{|l r|}
\hline
\textbf{Item} & \textbf{Amount (₦)} \\ \hline
\text{Direct labour} & 50,000 \\ \hline
\text{Beginning work}\text{-}in\text{-}progress & 4,000 \\ \hline
\text{Raw materials used} & 18,000 \\ \hline
\text{Indirect labour} & 4,000 \\ \hline
\text{Ending finished goods} & 16,000 \\ \hline
\text{Ending work in progress} & 9,000 \\ \hline
\text{Factory supplies} & 7,000 \\ \hline
\text{Selling expenses} & 25,000 \\ \hline
\text{Beginning finished goods} & 21,000 \\ \hline
\text{Other factory overheads} & 19,000 \\ \hline
\end{array}
\]
Calculate the prime cost.
Prime cost = Direct labour + Raw materials used.
= ₦50,000 + ₦18,000 = ₦68,000.
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Question 22
Use the information below to answer questions
Purchase:..Raw materials.................N15 000
Finished goods...........................N11 400
Stock:....(1/7/01)Raw materials..........N2 250
Work-in-progress.........................N1 875
Wages:.....Direct........................N17 100
Indirect.................................N5 400
Stock:.....(30/06/02)Raw materials.......N3 000
Work-in-progress.........................N3 375
What is the cost of manufactured goods?
Raw materials consumed = Opening stock + Purchases − Closing stock.
= ₦2,250 + ₦15,000 − ₦3,000 = ₦14,250.
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Question 23
Use the information below to answer questions
Purchase:..Raw materials.................N15 000
Finished goods...........................N11 400
Stock:....(1/7/01)Raw materials..........N2 250
Work-in-progress.........................N1 875
Wages:.....Direct........................N17 100
Indirect.................................N5 400
Stock:.....(30/06/02)Raw materials.......N3 000
Work-in-progress.........................N3 375
What is the cost of manufactured goods?
Raw materials consumed = 15,000 + 2,250 − 3,000 = ₦14,250.
Prime cost = ₦14,250 + Direct wages ₦17,100 = ₦31,350.
Add overhead (Indirect wages ₦5,400) = ₦36,750.
Add opening WIP ₦1,875 = ₦38,625.
Less closing WIP ₦3,375 = ₦35,250.
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Question 24
Subscription ₦5,420; Canopy rent ₦400; Wages ₦1,100; Postages ₦300; Loss from bar ₦160; Purchase of new furniture ₦120; Premises ₦4,000; Furniture at beginning ₦1,120.
What is the cash balance in the receipts and payments account?
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Question 25
Use the information below to answer questions
Purchase:..Raw materials.................N15 000
Finished goods...........................N11 400
Stock:....(1/7/01)Raw materials..........N2 250
Work-in-progress.........................N1 875
Wages:.....Direct........................N17 100
Indirect.................................N5 400
Stock:.....(30/06/02)Raw materials.......N3 000
Work-in-progress.........................N3 375
Determine the accumulated fund value?
D. ₦3,000
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Question 26
Not-for-profit organizations such as clubs and societies usually rely on annual subscriptions from members as their main source of income. Other sources like rents or bar sales are supplementary.
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Question 27
Clubs and societies do not prepare profit and loss accounts; they prepare income and expenditure accounts. A surplus (profit) is recorded on the credit side of the income and expenditure account.
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Question 28
Departmental accounts are prepared to aid the comparison of the?
Departmental accounts allow for the tracking of each department's financial performance independently, which enables a direct comparison between their current performance and the same period in the previous year. This comparison is crucial for identifying trends, assessing progress, and making informed business decisions.
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Question 29
Total employees = 1,500 + 2,000 + 3,000 + 500 = 7,000.
Cost per employee = ₦21,000 ÷ 7,000 = ₦3 per employee.
Department K's employees = 2,000 × ₦3 = ₦6,000.
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Question 30
The movement of goods from head office to a branch is treated in the head office accounts as?
When goods are transferred internally from the head office to a branch, it's considered an issue of inventory from the head office's perspective. It's not a sale because the head office still owns the goods and hasn't sold them to a third party.
A "purchase" would be if the branch bought goods from an external supplier. A "requisition" is a formal request for goods, which would precede the actual issue of the goods.