Use the information below to answer questions below
Work-in-progress 1/1……………………N1,000
Work-in-progress 31/12………………….N2,000
Production cost of goods manufactured…….N20,000
Sales…………………………………N50,000
Stock of finished goods 1/1……………..N4,000
Stock of finished goods 31/12……………N5,000
Selling and distribution expenses………..N2,000
Administrative expenses…………………N1,000
Determine the gross profit?
-
A.
49,000 -
B.
48,000 -
C.
31,000 -
D.
30,000
Correct Answer: Option C
Explanation
Trading profit and Loss Account
|
opening stock 4,000 Gross profit 31,000 |
Sales 50,000 G.profit b/d 31000 |