WAEC Financial Accounting 1992 Question 28

Emeka Chukwudi (Nig.) Limited is a manufacturing company. Its books showed the following for the year ended 31st December, 1990.
Opening Stock - Raw materials: ₦42,000
Purchases - Raw materials: ₦265,000
Returns Outwards: ₦13,000
Depreciation – Plant and Machinery: ₦10,000
Wages: ₦52,000
Closing Stock – Raw materials: ₦72,000
Direct expenses: ₦11,000
Production Manager's salaries: ₦18,000
Factory rent: ₦15,000

The cost of production is

1. A.₦373,000
2. B.₦351,000
3. C.₦337,000
4. D.₦328,000
5. E.₦277,000