1.

{:("Compute Cost of Materials Consumed from the following:", ₹),("Opening Inventory : Materials","5,50,000"),(": Finished Goods","2,50,000"),("Materials Purchased :","22,50,000"),("Closing Inventory : Materials","4,50,000"),(":Finished Goods","1,50,000"):}

Answer»


Solution :Cost of Materials CONSUMED = Opening INVENTORY of Materials + Purchases of
Materials - CLOSING Inventory of Materials
= RS 5,50,000 + Rs 22,50,000- Rs 4,50,000 = Rs 23,50,000.
Note: Opening Inventory of Finished Goods, i.e., Rs 2,50,000 and Closing Inventory of Finished Goods, i.e., Rs 1,50,000 will not be considered to COMPUTE Cost of Materials Consumed as these are considered to calculate Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade.


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