JAMB Accounting 2018 Objective — Question 13

Question 13 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2018 Objective paper, with the correct answer and a full explanation.

A business purchases 900 books at #1,000 each, then ⅔ purchases 590 books at #950 each, then ¹⁵⁄₃ sells 300 books at #900 each. Determine the cost of goods sold using FIFO

A. #285,000
B. #300,000Correct
C. #570,000
D. #600,000

Explanation

Using FIFO, the 300 units sold are costed at the first-in price of #1,000 each. Cost of goods sold = 300 × #1,000 = #300,000.

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