Paper 3 · November 2004 · Partnership Accounts

A manufacturing partnership held raw material stocks of $60 000 at the beginning of the year and $44 000 at the end of the year. Raw material purchases for the year were $560 000. Calculate the cost of raw materials consumed for the year.

Model answer

576000

Also accepted: 576 000, $576 000

Explanation

Opening stock $60 000 + purchases $560 000 - closing stock $44 000 = $576 000 consumed.

Derived from ZIMSEC Accounting 9197/3 Paper 3 (Case Study), November 2004, Q1

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