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JAMB Principles of Accounts 2008 Question 29

Question 29

Manufacturing Accounts

Stock of materials 1/1 ₦10 000
Purchase of raw materials ₦160 000
Manufacturing wages ₦420 000
Royalties ₦3 000
Stock of raw materials 31/12 ₦14 000
What is the cost of raw materials consumed?

  1. A.N173 000
  2. B.N170 000
  3. C.N160 000
  4. D.N156 000
Show the answer and explanation

Answer: D (N156 000)

Explanation

Opening stock 10 000 + purchases 160 000 − closing stock 14 000 = ₦156 000.