Question

B company manufactures desks. The beginning balance of raw material inventory was Rs. 4,500; raw material purchases of Rs. 29,600 were made during the month. At the month end, Rs. 7,700 of raw material was on hand. What was Raw material used during the month was?

1. Rs. 26,400
2. Rs. 34,100
3. Rs. 37,300
4. Rs. 29,600

Answer 1

Answer:

1. Rs. 26,400

Explanation:

Beginning balance of raw material = 4,500

Add: Purchase of raw material = 29,600

Less: Ending balance of raw material = 7,700

Raw material used during the month = 26,400