- 1 Marks
FA – Nov 2013 – L1 – SA – Q38 – Elements of Financial Statements
Calculating the original cost of goods using mark-up information.
Question
Jenson Manufacturing Company has the policy of transferring manufactured goods from the factory to the sales department at cost plus 25% mark-up. In the current accounting period, the value of goods transferred from the production to sales department amounted to ₦2,000,000. What was the original cost of the goods to the production department?
Find Related Questions by Tags, levels, etc.
- Tags: Cost Determination, Inventory Valuation, Mark-Up
- Level: Level 1
- Topic: Elements of Financial Statements
- Series: NOV 2013
