Use the information below to answer questions .Stock of material 1/1..............₦10 000 Purchase of raw material...........₦160 000 Manufacturing wages......

Use the information below to answer questions .Stock of material 1/1..............₦10 000

Purchase of raw material...........₦160 000

Manufacturing wages................₦420 000

Royalties..........................₦3 000

Stock of raw materials 31/12.......₦14 000What is the cost of raw materials consumed?

Answer Details

To calculate the cost of raw materials consumed, we need to use the following formula: Cost of Raw Materials Consumed = Beginning Inventory of Raw Materials + Purchases of Raw Materials - Ending Inventory of Raw Materials Using the information provided, we can calculate the cost of raw materials consumed as follows: - Beginning inventory of raw materials on 1/1 = ₦10,000 - Purchases of raw materials during the year = ₦160,000 - Ending inventory of raw materials on 31/12 = ₦14,000 Therefore, the cost of raw materials consumed is: Cost of Raw Materials Consumed = ₦10,000 + ₦160,000 - ₦14,000 = ₦156,000 Therefore, the cost of raw materials consumed is ₦156,000. Option (D) ₦156,000 is the correct answer.