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WAEC Financial Accounting 2022 Question 22

Question 22

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 consumed 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: D (Le 372,000)

Explanation

932,000 − closing stock 560,000 = Le 372,000.