Test Index

WAEC Accounting 2018 Paper

Question : 40

Total: 50

Use the following information to answer the question below

Solution:

Concept:

Cost of goods sold is calculated as opening stock plus purchases plus carriage inwards minus closing stock.

Explanation:

Use the formula:

\text{Cost of goods sold} = \text{Opening stock} + \text{Purchases} + \text{Carriage inwards} - \text{Closing stock}

Substitute the given values:

3{,}296 + 8{,}960 + 84 - 4{,}936

First add opening stock and purchases:

3{,}296 + 8{,}960 = 12{,}256

Add carriage inwards:

12{,}256 + 84 = 12{,}340

Subtract closing stock:

12{,}340 - 4{,}936 = 7{,}404

Therefore, the cost of goods sold is ₦7,404.

Answer:

B. 7,404

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