A manufacturing company's raw materials inventory on 1 January was $4 800, purchases of raw materials during the year were $17 250, and carriage inwards was $935. Raw materials inventory on 31 December was $2 550. Calculate the cost of raw materials consumed for the year.

Model answer

$20,435

Also accepted: 20435, 20 435, $20 435

Explanation

Cost of raw materials consumed = opening stock + purchases + carriage inwards - closing stock = 4 800 + 17 250 + 935 - 2 550 = $20 435.

Derived from ZIMSEC Principles of Accounting 4051/2 Paper 2, November 2022, Q1

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