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JAMB Commerce 2013 Objective — Question 23

Question 23 of 50 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2013 Objective paper, with the correct answer and a full explanation.

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The rate of turnover of a firm in a given year is 5 times while the average stock is ₦12,500. What is the cost of goods sold? (Note: the source scan's option A is not legible/printed.)

  • A. (not legible in source)
  • B. ₦62,500Correct
  • C. ₦65,000
  • D. ₦24,000

Explanation

Rate of stock turnover = Cost of goods sold (turnover) ÷ Average stock. 5 = COGS ÷ 12,500, so COGS = 5 × 12,500 = ₦62,500.

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