JAMB Accounts Principles of Accounts 2010 Paper

Concept:Selling and distribution expenses are shared among departments in the ratio of their turnover, that is, their sales.Explanation:Total selling and distribution expenses to be apportioned is $\mathrm{N}1{,}800$.From the table, departmental turnovers are: K = $\mathrm{N}40{,}000$, L = $\mathrm{N}60{,}000$, and M = $\mathrm{N}80{,}000$.So, the turnover ratio is $40{,}000 : 60{,}000 : 80{,}000 = 4 : 6 : 8$.Total ratio parts = $4 + 6 + 8 = 18$.Department M has 8 parts out of 18.Therefore, Department M’s share = $\frac{8}{18} \times \mathrm{N}1{,}800 = \mathrm{N}800$.Answer:A. $\mathrm{N}800$