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    Question

    ABC Ltd purchased raw materials worth Rs.1 lakh during

    FY19. It had opening stock of raw materials of Rs.12,000 at the beginning of the year and closed the year with a stock of Rs.8000 worth of raw materials. How much of raw material did ABC Ltd consume in FY19?
    A Rs.1 lakh Correct Answer Incorrect Answer
    B Rs.96,000 Correct Answer Incorrect Answer
    C Rs.1.04 lakh Correct Answer Incorrect Answer
    D Rs.1.12 lakh Correct Answer Incorrect Answer

    Solution

    Material Consumed = Opening Stock of Raw Material (RM) + RM Purchases – Closing Stock of RM = 12,000+100,000-8000 = Rs.104,000 or Rs.1.04 lakh

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