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JAMB Accounting 2008 Objective — Question 20

Question 20 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2008 Objective paper, with the correct answer and a full explanation.

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Use the information below to answer questions 20 and 21: Aug. 1 Received 20 units at 60 each; Aug. 6 Received 20 units at 68 each; Aug. 10 Issued 16 units; Aug. 20 Received 40 units at 80 each; Aug. 31 Issued 48 units. Using the simple average method, what is the cost per unit of the closing stock?

  • A. 80
  • B. 74Correct
  • C. 64
  • D. 60

Explanation

After the issue on Aug. 31, the only stock left is the one received Aug. 20. Using simple average across the received batches gives a cost per unit of N74 for the closing stock.

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