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WAEC Financial Accounting 2013 Question 40

Question 40

Manufacturing Accounts

Use the following information to answer questions 40 and 41.
Stock of raw materials 1/1/09: GH¢5,000
Stock of raw materials 31/12/09: GH¢5,500
Purchase of raw materials: GH¢50,000
Carriage inwards: GH¢3,000
Direct labour: GH¢12,000
Factory overhead: GH¢17,500
The cost of raw materials consumed is

  1. A.GH¢58,000
  2. B.GH¢52,500
  3. C.GH¢52,000
  4. D.GH¢50,000
Show the answer and explanation

Answer: B (GH¢52,500)

Explanation

Raw materials consumed = 5,000 + 50,000 + 3,000 − 5,500 = GH¢52,500.