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JAMB Accounts Principles of Accounts 2018 Paper

Question : 6

Total: 88

Use the information below to answer question

Solution:

Concept:

Average stock is the mean value of inventory held during a period.

Explanation:

It is calculated by adding the opening stock and the closing stock, then dividing the total by two.

Using the figures: opening stock =

₦32,000

and closing stock =

₦9,000

Average stock =

\frac{\text{opening stock} + \text{closing stock}}{2}

Average stock =

\frac{32,000 + 9,000}{2}

Average stock =

\frac{41,000}{2} = ₦20,500

Answer:

A. ₦20,500

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