WAEC Accounting 2022 Paper

Concept:Cost of raw materials consumed is the value of raw materials actually used in production during an accounting period.Explanation:It is calculated by adjusting total raw materials available with opening and closing stock.Total raw materials available = Opening stock of raw materials + Purchases of raw materials - Returns on raw materials.Then, cost of raw materials consumed = Total raw materials available - Closing stock of raw materials.Substitute the given values:Opening stock = $822,000$Purchases = $125,000$Returns on raw materials = $15,000$Closing stock = $560,000$$= 822{,}000 + 125{,}000 - 15{,}000 - 560{,}000$$= 947{,}000 - 15{,}000 - 560{,}000$$= 932{,}000 - 560{,}000$$= 372{,}000$Answer:$Le\,372{,}000$ (Option D)