Question

13. Find the value of purchases if raw material consumed Rs. 90,000, Opening and Closing Stock of raw material is Rs. 50,000 and Rs. 30,000 respectively. OA) Rs. 10,000 O B) Rs. 20,000 OC) Rs. 70,000 OD) Rs. 1,60,000​

Answer 1

The value of purchases is Rs.70,000. (Option C)

Given:

Raw material consumed=Rs. 90,000

Opening Stock of raw material=Rs. 50,000

Closing Stock of raw material=Rs. 30,000

To find:

The value of purchases

Solution:

We can find the value by following the given steps-

Let the value of purchases be P.

We know that the value of purchases refers to the amount of raw material purchased during the year.

The value of closing stock=Opening stock-raw material consumed+the value of purchases

The closing and opening stock of raw material are Rs.30,000 and Rs.50,000, respectively.

The amount of raw materials consumed is Rs.90,000

On putting the values, we get

30,000=50,000 - 90,000 + P

30,000= P- 40,000

P= 40,000+30,000

P=Rs.70,000

Therefore, the value of purchases is Rs.70,000.