Test Index

JAMB Accounts Principles of Accounts 2019 Paper

Question : 21

Total: 71

Use the following Information to answer this question.

Solution:

Concept:

The cost of raw materials consumed is the value of raw materials actually used in production.

Explanation:

Start with the opening stock of raw materials.

Add purchases of raw materials and carriage inwards to get the total materials available.

Then subtract the closing stock of raw materials.

\text{Raw materials consumed} = \text{Opening stock} + \text{Purchases} + \text{Carriage inwards} - \text{Closing stock}

= 32{,}160 + 145{,}600 + 7{,}000 - 29{,}640

= 184{,}760 - 29{,}640

= 155{,}120

Answer:

The cost of raw materials consumed is

\text{₦}155{,}120

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