Question

A Co. used Rs. 300,000 of direct material. Year end material stock was
50,000 more than it was at beginning. Calculate material purchased
300000
250000
350000
400000​

Answer 1

Answer:

ANSWER

Raw material which is purchased in the current year is shown under cost of material consumed. Cost of material consumed is the actual cost of materials used by adjusting the opening and closing capital.

Cost of goods consumed = Opening stock + purchases - closing stock.