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WAEC 2024

Use the following information to answer this question Le Opening stock                 6,000 Sales                               180,000 Closing stock                   4,200 Mark-up is 33\(\frac{1}{3}\)% The cost of goods sold is

  1. ALe 139,200.
  2. BLe 135,000.
  3. CLe 133,200.
  4. DLe 127,200.

Explanation

Mark-up is 33\( \frac{1}{3} \)% on cost, which means Gross Profit is \( \frac{1}{3} \) of Cost of Goods Sold (COGS). If COGS is represented as 3 units, then Gross Profit is 1 unit, making Sales 4 units (COGS + Gross Profit). Given Sales = Le 180,000. Therefore, 4 units = Le 180,000. One unit = Le 180,000 / 4 = Le 45,000. COGS = 3 units = 3 \( \times \) Le 45,000 = Le 135,000.

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