WAEC Accounting 2010 Paper

Concept:Raw materials consumed means the actual cost of raw materials put into production during the period.Explanation:The opening stock of raw materials is the value of materials already in hand at the beginning.Add the purchases of raw materials made during the period.Add the carriage on raw materials because it is part of the total cost of bringing the materials into the factory.Subtract the closing stock of raw materials to remove the value of materials left unused at the end.Thus, the raw materials consumed is calculated as follows:$\text{Raw materials consumed} = \text{Opening stock} + \text{Purchases} + \text{Carriage on raw materials} - \text{Closing stock}$Substituting the given values:$= 24,750 + 129,640 + 10,000 - 45,000$$= 119,390$Other items in the table, such as wages, salaries, royalties, and insurance, are not used in calculating raw material consumed.Answer:The value of raw material consumed is $\text{N}119{,}390$.Correct option: B.