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JAMB Principles of Accounts 2000 Question 15

Question 15

Manufacturing Accounts

Use the information below to answer questions 15 and 16.
(₦)
Cost of raw materials consumed 300,600
Carriage inwards 6,700
Returns of raw materials 10,800
Closing stock of raw materials 100,250
Manufacturing wages 27,000
Lighting, power, insurance and rent relating to the factory are apportioned 1/3, 2/5, 1/6 and 1/7 with totals ₦30,000; ₦75,000; ₦36,000 and ₦56,000 respectively.
What is the cost of the opening raw materials?

  1. A.₦418,350
  2. B.₦404,950
  3. C.₦400,250
  4. D.₦398,250.
Show the answer and explanation

Answer: B (₦404,950)

Explanation

No purchases are given, so consumed = opening + carriage inwards − returns − closing. Opening = 300,600 − 6,700 + 10,800 + 100,250 = ₦404,950.