Use the information below to answer questions Purchase:..Raw materials.................₦15 000 Finished goods...........................₦11 400 Stock:....(1...

Use the information below to answer questions Purchase:..Raw materials.................₦15 000

Finished goods...........................₦11 400

Stock:....(1/7/01)Raw materials..........₦2 250

Work-in-progress.........................₦1 875

Wages:.....Direct........................₦17 100

Indirect.................................₦5 400

Stock:.....(30/06/02)Raw materials.......₦3 000

Work-in-progress.........................₦3 375The cost of raw materials consumed is?

Answer Details

The cost of raw materials consumed can be calculated as follows: Beginning Raw Materials Inventory (1/7/01) = ₦2,250 Add: Purchases of Raw Materials = ₦15,000 Raw Materials Available for Use = ₦17,250 Less: Ending Raw Materials Inventory (30/06/02) = ₦3,000 Raw Materials Consumed = ₦14,250 Therefore, the cost of raw materials consumed is ₦14,250. Option (D) is the correct answer.