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WAEC Financial Accounting 2003 Question 28

Question 28

Manufacturing Accounts

The cost of raw materials consumed is determined in the Manufacturing Account as

  1. A.opening stock plus purchases less closing stock.
  2. B.purchases plus closing stock less opening stock.
  3. C.cost of materials available plus closing stock.
  4. D.cost of materials available less opening stock.
Show the answer and explanation

Answer: A (opening stock plus purchases less closing stock.)

Explanation

Raw materials used = opening stock + purchases − closing stock.