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JAMB Principles of Accounts 2003 Question 29

Question 29

Manufacturing Accounts

Use the information below to answer questions 28 and 29.
PQ Manufacturing Company (₦)
Raw materials (1/1/2001) 3 500
Raw materials (31/12/2001) 4 900
Purchase of raw materials 56 000
Salary 63 000
Wages 148 050
Factory lighting 3 080
Plant Depreciation 2 800
Factory Insurance 2 170
The company consumed raw materials worth

  1. A.₦54 600
  2. B.₦56 000
  3. C.₦57 400
  4. D.₦59 500
Show the answer and explanation

Answer: A (₦54 600)

Explanation

Raw materials consumed = opening 3 500 + purchases 56 000 − closing 4 900 = ₦54 600.