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JAMB Principles of Accounts 2005 Question 30

Question 30

Manufacturing Accounts

Use the information below to answer questions 30 and 31.
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 ₦3 375
The cost of raw materials consumed is

  1. A.₦17 250
  2. B.₦15 750
  3. C.₦15 000
  4. D.₦14 250
Show the answer and explanation

Answer: D (₦14 250)

Explanation

Opening stock 2 250 + purchases 15 000 − closing stock 3 000 = ₦14 250.