What is the closing raw material inventory (stock) of the manufacturer? (a) Nil (b) 600 (c) 900

Question:

What is the closing raw material inventory (stock) of the manufacturer?

(a) Nil

(b) £600

(c) £900

(d) £1,500


The following information applies to question.
A manufacturing company has carried out the following business transactions:
• 500 kg of raw materials has been purchased for cash at a price of £3 per kg.
• 300 kg of the raw materials has been put into production process.
• 1 kg of raw material was required to make one item of the finished product.
• The cost of labour and other expenses involved in production amounted to £2 for each item of the finished product.
• 300 items of the finished product were transferred to the finished goods store.
• 220 items of the finished product were delivered to customers.
• Each item of the finished product was sold for £8 on 2 months’ credit terms

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Financial Accounting

ISBN: 9781292244471

8th Edition

Authors: Pauline Weetman

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