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WAEC SSCE - Financial Accounting - 1993 (Objective)

Question 1 Report

Use the following information to answer the given question.
\(\begin{array}{c|c} & & N \\ \hline \text{Purchases:} & \text{raw materials} & 20,000 \\ & \text{finished goods} & 15,200 \\ \text{Stock 1/1/89:} & \text{ raw materials} & 3,000 \\ & \text{work-in-progress} & 2,500 \\ Wages: & direct & 22,800 \\ & indirect & 7,200 \\ \text{Factory expenses:} & electricity & 12,000 \\ & insurance & 2,000 \\ \text{Stock 31/12/89:} & \text{raw materials} & 4,000 \\ & \text{work-in-progress} & 4,500\end{array}\)
The cost of materials used is
Answer Details
The cost of materials used can be calculated using the following formula: Cost of materials used = Purchases + Stock 1/1/89 - Stock 31/12/89 Substituting the given values, we get: Cost of materials used = 20,000 + 3,000 - 4,000 = 19,000 Therefore, the cost of materials used is N19,000 (Option D). This represents the total cost of raw materials used in the manufacturing process during the year, after accounting for the opening and closing stock of raw materials.
Read lesson note on Manufacturing Accounts (JAMB)
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