Use the question to answer this question:
Expenses are to be shared in the ratio of sales.
The net profit for departmental A is
| Opening stock | ₦ |
| DepartmentAB | 100800 |
| Purchases:ABWages of workersSalaries | 1500200050100 |
| SalesAB | 30005000 |
Expenses are to be shared in the ratio of sales.
The net profit for departmental A is
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Correct Answer: Option D
Explanation:
Cost of goods sold for departmental = 1000 + 1500 = 2,500
Gross profit = Sales - Cost of goods sold
3000 - 2500
⇒ ₦500
Therefore, Net profit = Gross profit - Expenses
500 - (50 ÷ 2 + 100 ÷ 2)
500 - (25 + 50)
500 - 75
Net profit = ₦425
Cost of goods sold for departmental = 1000 + 1500 = 2,500
Gross profit = Sales - Cost of goods sold
3000 - 2500
⇒ ₦500
Therefore, Net profit = Gross profit - Expenses
500 - (50 ÷ 2 + 100 ÷ 2)
500 - (25 + 50)
500 - 75
Net profit = ₦425