Paper 2 · Manufacturing accounts and working capital

Mwanza Manufacturing Company had opening raw material stock of $13 000, purchases of raw materials of$ 67 000, freight charged on raw materials of $3 000, and closing raw material stock of$ 25 000 for the year ended 31 December 2010. What was the cost of raw materials consumed?

Model answer

$58 000

Also accepted: 58000, 58 000

Explanation:

13 000 +

67 000 +

3 000 -

25 000 = $58 000.

Derived from ZIMSEC Principles of Accounts 7112/2 Paper 2, November 2014 Specimen Paper, Q3

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