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WAEC Financial Accounting 2002 Question 8

Question 8

Manufacturing Accounts

Raw Materials: Stock 1/1/2000 N4,500; Purchases N30,000; Stock 31/12/2000 N6,000
Wages: direct N34,200; indirect N10,800
Factory expenses: rent N18,000; insurance N3,000
Work-in-progress: 1/1/2000 N3,750; 31/12/2000 N6,750
What is the cost of raw materials consumed?

  1. A.N34,500
  2. B.N31,500
  3. C.N30,000
  4. D.N28,500
Show the answer and explanation

Answer: D (N28,500)

Explanation

4,500 + 30,000 − 6,000 = N28,500.