Question on: JAMB Accounting - 2022

Use the information below to answer questions

Purchase:..Raw materials.................N15 000
Finished goods...........................N11 400
Stock:....(1/7/01)Raw materials..........N2 250
Work-in-progress.........................N1 875
Wages:.....Direct........................N17 100
Indirect.................................N5 400
Stock:.....(30/06/02)Raw materials.......N3 000
Work-in-progress.........................N3 375

The cost of raw materials consumed is?

A

N17 250

B

N15 750

C

N15 000

D

N14 250

Ask EduPadi AI for a detailed answer
Correct Option: D

To calculate the cost of raw materials consumed, we need to consider the raw materials purchased and the changes in raw materials stock during the period.

Raw materials purchased = N15,000
Raw materials stock on July 1, 2001 = N2,250
Raw materials stock on June 30, 2002 = N3,000

Now, calculate the cost of raw materials consumed:

Cost of raw materials consumed = Raw materials purchased + Raw materials on July 1, 2001 - Raw materials on June 30, 2002

Cost of raw materials consumed = N15,000 + N2,250 - N3,000 = N14,250

So, the cost of raw materials consumed is N14,250

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