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WAEC Financial Accounting 2022 Question 21

Question 21

Manufacturing Accounts

Use the following information to answer questions 21 and 22
Raw materials:
Stock (01/01/2017): Le 822,000
Stock (31/12/2017): Le 560,000
Purchases: Le 125,000
Returns of raw materials: Le 15,000
The cost of raw materials available for production is

  1. A.Le 947,000
  2. B.Le 932,000
  3. C.Le 402,000
  4. D.Le 372,000
Show the answer and explanation

Answer: B (Le 932,000)

Explanation

822,000 + 125,000 − 15,000 = Le 932,000.