NECO Accounting 2022 Objective — Question 45

Question 45 of 50 from the National Examinations Council (NECO) Accounting 2022 Objective paper, with the correct answer and a full explanation.

Trading Account of Umeh Enterprises for the year ended 31 December 2019: Opening stock GH¢10,000; Purchases GH¢120,000; Returns inward GH¢40,000; Closing stock GH¢22,800; Sales GH¢200,000. The cost of goods sold is

A. GH¢152,800
B. GH¢107,200Correct
C. GH¢88,800
D. GH¢43,200

Explanation

Cost of goods sold = Opening stock + Purchases - Closing stock = 10,000 + 120,000 - 22,800 = GH¢107,200.

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