Use the following information to answer the given question \(\begin{array}{c|c} & N\\ \text{Stock of raw materials - 1st January, 2002} & 460,000\\ \text{Pu...
Question 1 Report
Use the following information to answer the given question
\(\begin{array}{c|c} & N\\ \text{Stock of raw materials - 1st January, 2002} & 460,000\\ \text{Purchases of raw materials} & 1,000,000\\ \text{Carriage inwards} & 100,000 \\ \text{Stock of raw materials - 31st December, 2002} & 500,000\\ \text{Royal paid} & 35,000 \\ \text{Manufacturing wages} & 80,000\\ \text{Supervisor's salary} & 15,000\end{array}\)
Cost of raw materials used is
\(\begin{array}{c|c} & N\\ \text{Stock of raw materials - 1st January, 2002} & 460,000\\ \text{Purchases of raw materials} & 1,000,000\\ \text{Carriage inwards} & 100,000 \\ \text{Stock of raw materials - 31st December, 2002} & 500,000\\ \text{Royal paid} & 35,000 \\ \text{Manufacturing wages} & 80,000\\ \text{Supervisor's salary} & 15,000\end{array}\)
Cost of raw materials used is
Answer Details
The cost of raw materials used can be calculated using the following formula:
Cost of raw materials used = Opening stock of raw materials + Purchases + Carriage inwards - Closing stock of raw materials
Substituting the given values, we get:
Cost of raw materials used = 460,000 + 1,000,000 + 100,000 - 500,000
Cost of raw materials used = 1,060,000
Therefore, the cost of raw materials used is N1,060,000. Option (D) is the correct answer.
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