Use the following information to answer the given question \(\begin{array}{c|c} & N \\ \hline \text{Opening stock of raw materials} & 8,000\\ \text{Purchase...

Assessment: WAEC SSCE - Financial Accounting - 2001 (Objective) Subject: Financial Accounting

Question 1 Report

Use the following information to answer the given question
\(\begin{array}{c|c} & N \\ \hline \text{Opening stock of raw materials} & 8,000\\ \text{Purchases} & 45,000 \\ \text{Closing stock of raw materials} & 9,500 \\ \text{Direct wages} & 6,450 \\ \text{Indirect wages} & 2,800 \\ \text{Depreciation - Plant and Machinery} & 3,200 \\ \text{Factory rents and rates} & 350 \\ \text{Opening work-in-progress} & 3,250 \\ \text{Closing work-in-progress} & 3,750\end{array}\)
Cost of raw materials consumed is
Answer Details
To determine the cost of raw materials consumed, we need to calculate the total cost of materials available for use during the accounting period. This can be done by adding the opening stock of raw materials and the purchases made during the period. Total Cost of Materials Available = Opening Stock of Raw Materials + Purchases Total Cost of Materials Available = 8,000 + 45,000 Total Cost of Materials Available = 53,000 We then subtract the closing stock of raw materials to determine the cost of raw materials consumed. Cost of Raw Materials Consumed = Total Cost of Materials Available - Closing Stock of Raw Materials Cost of Raw Materials Consumed = 53,000 - 9,500 Cost of Raw Materials Consumed = 43,500 Therefore, the answer is N43,500.

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