Calculate Cost of Raw Material consumed from information given below Opening Stock of Raw Material R...........

Costing - Phase (I & II) Overview of Cost and Management Accounting

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Calculate Cost of Raw Material consumed from information given below:

Opening Stock of Raw Material: Rs. 30,000/-

Purchases of Raw Material:1,20,000/-

Carriage inward: Rs. 10,000/-

Closing stock of Raw Material: Rs. 60,000/-

Direct labour: Rs. 40,000/-

Rs. 1,60,000/-

Rs. 1,20,000/-

Rs. 1,00,000/-

Rs. 1,50,000/-

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Explanation:

Raw material consumed is material used for the manufacturing of fished goods during a particular year. It is calculated as: Opening Stock of Raw Material (+) Purchases of Raw Material (+) Direct Expenses (–) Closing stock of Raw Material. In given problem, raw material consumed = 30,000/- (+) 1,20,000/- (+) Rs. 10,000/- (-) 60,000/-=1,00,000/-