WAEC Accounting 2017 Objective — Question 39

Question 39 of 50 from the West African Examinations Council (WAEC) Accounting 2017 Objective paper, with the correct answer and a full explanation.

39. Use the following information to answer questions 39 and 40: Opening stock N2,300; Purchases N11,874; Sales N18,600; Closing stock N3,000; Cost of goods sold N11,500. The percentage of gross profit to sales is

A. A. 61.82%
B. B. 38.17%Correct
C. C. 28.49%
D. D. 14.25%

Explanation

Gross profit = Sales - cost of goods sold = N18,600-N11,500 = N7,100. % of Gross profit to sales = (N7,100/N18,600)x100 = 38.17%.

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