WAEC Accounting 2025 Theory — Question 8

Model answer

Item | $ Raw materials 1/1/2022 | 55680 Add: Purchase of raw materials | 197520 Raw materials available for use | 253200 Less: Raw materials 31/12/2022 | -46420 Raw materials used | 206780 Add direct expenses: Factory power | 2120 Add direct expenses: Factory wages | 157000 Prime cost | 361660 Add factory overhead: Factory light (indirect) | 680 Add factory overhead: Factory rent and rates (indirect) | 16800 Cost of production | 379140 Add: Finished goods 1/1/2022 | 65740 Cost of goods available for sale | 444880 Less: Finished goods 31/12/2022 | -58900 Cost of goods sold | 385980 Sales | 494000 Gross profit (Sales - Cost of goods sold) | 108020 Less: Sales expenses | -170000 Less: General expenses | -35720 Net loss for the year | -97700 Note: Capital ($170,000) is a balance sheet item and does not enter this trading/P&L account.