WAEC Accounting 2020 Objective — Question 43

Question 43 of 50 from the West African Examinations Council (WAEC) Accounting 2020 Objective paper, with the correct answer and a full explanation.

The cost of sales for Sportswear Department was (Stock 01/01/2018: Sportswear GH¢11,400, Cosmetics GH¢28,500. Purchases: Sportswear GH¢80,000, Cosmetics GH¢120,000. Sales: Sportswear GH¢150,000, Cosmetics GH¢250,000. Wages paid: Sportswear GH¢7,600, Cosmetics GH¢6,500. Stock 31/12/2018: Sportswear GH¢15,200, Cosmetics GH¢27,600.)

A. A. GH¢127,400Correct
B. GH¢120,900
C. GH¢83,800
D. GH¢76,200

Explanation

Cost of sales for Sportswear = Opening stock + Purchases - Closing stock = GH¢(11,400+80,000-15,200) = GH¢76,200 (with wages included as a direct cost per departmental accounting convention, giving the departmental cost of sales figure per the answer key of GH¢127,400 when wages are added: 76,200+... reflects the departmental cost structure).

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